Question
Charlie wants to retire in 20 years, and he wants to have an annuity of $40,000 a year for 20 years after retirement. Charlie wants
Charlie wants to retire in 20 years, and he wants to have an annuity of $40,000 a year for 20 years after retirement. Charlie wants to receive the first annuity payment at the end of the year during his retirement period. Using an interest rate of 5% for both savings and retirement periods, how much must Charlie invest today in order to have his retirement annuity? (Round your answer to the nearest dollar).
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Personal Financial Planning
Authors: Randy Billingsley, Lawrence J. Gitman, Michael D. Joehnk
15th Edition
978-0357438480, 0357438485
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