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 $390,000 by the end of 45 years from today.

image text in transcribed

To supplement your planned retirement in exactly 45 years, you estimate that you need to accumulate $390,000 by the end of 45 years from today. You plan to make equal, annual, end-of-year deposits into an account paying 7% annual interest. a. How large must the annual deposits be to create the $390,000 fund by the end of 45 years? b. If you can afford to deposit only $1,110 per year into the account, how much will you have accumulated by the end of 45 years? Your Answer: (Round to two decimal places.) a. The annual deposits to create the $390000 fund by the end of 45 years should be $ b. If you can afford to deposit only $1110 per year into the account, by the end of 45 years you will have $

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

Step: 3

blur-text-image

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

Trading The Future A Step By Step Guide To Futures Market Mastery

Authors: Axel Stevens

1st Edition

979-8857010327

More Books

Students also viewed these Finance questions