Question
You are planning for your pension plan that you will start to invest money, deposit first saving a year from today, and get retired after
You are planning for your pension plan that you will start to invest money, deposit first saving a year from today, and get retired after 20 years. You desire to take an immediate trip, costing approximately 15000 TL.(t=20) when you retire, and expect to live 25 more years, for which you need 24000 TL each year, starting from one year from retirement. Your savings will be equal and on annual basis.
a. How much you should save each year to accomlish your goals? Savings will earn 10% annually.
b. Assume that your first saving will be deposited at t=0 and your first retirement payment will be at T=20. How would these change your required savings? Please show your calculations.
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