Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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 ?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Mergers Acquisition And Other Restructuring Activities

Authors: Donald M. Depamphilis

6th Edition

123854857, 978-0123854858

More Books

Students also viewed these Finance questions

Question

Avoid evasiveness. Be direct with your answers when possible.

Answered: 1 week ago