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To supplement your planned retirement in exactly 45 years , you estimate that you need to accumulate $200.000 by the end of 45 years from
To supplement your planned retirement in exactly 45 years , you estimate that you need to accumulate $200.000 by the end of 45 years from today. You plan to make equal , annual , end-of-year deposits into an account paying 6% annual interest.
a)How large must the annual deposits be to create the $200.000 fund by the end of 45 years ?
b)If you can afford to deposit only $760 per year into the account , how much will you have accumulated by the end of 45 years ?
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