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Sunrise Industries wishes to accumulate funds to provide a retirement annuity for its vice president of research, Jill Moran. Ms. Moran will retire in exactly
Sunrise Industries wishes to accumulate funds to provide a retirement annuity for its vice president of research, Jill Moran. Ms. Moran will retire in exactly 12 years' time. One year after her retirement she will receive her first annual payment of $42,000 In total, she will receive 20 annual payments. During the 12 year accumulation period, Sunrise wishes to fund the annuity by making equal semi-annual deposits into an account earning an effective 9% return The first payment will be made today On the date of Ms Moran's retirement, Sunrise plans to move the accumulated monies into a safer account eaming an effective 6% per year. Required: Calculate the amount Sunrise Industries must invest each year of the 12 year accumulation period to fully fund Ms. Moran's retirement annuity
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