Question
assume that today is your 30 th birthday and you have 690813 in your savings account. Every quarter you will reinforce your savings account with
assume that today is your 30thbirthday and you have 690813 in your savings account. Every quarter you will reinforce your savings account with new deposits that grow 1% per quarter, start one year from now and end when you turn 75 years old. The last amount deposited is 5852. Assume that your savings earn an effective annual rate of 9.2%.
You will use the entirety of your savings to receive a growing annuity that increases your purchasing power by 2% every year. The first annual cash-flow will be received when you turn 80 years old, and the last when you turn 96 years old.
Assume an annual inflation of 2.6%.
Compute the amount received on your 80thbirthday.
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