Question
You have determined that you will need at least 3 000 000 SEK in private pension savings when you retire in 45 years. You plan
You have determined that you will need at least 3 000 000 SEK in private pension savings when you retire in 45 years. You plan to set aside a series of payments every year in an account yielding 8% per year to reach this goal. You will put the first payment in the account a year from today.
a. If you make the same payments every year, what would your yearly payment be? The yearly payment would be SEK
b. Assume now that your first payment would be 8 000 and that the payments would increase with 4% per year as your salary increases. What would be the new balance in your pension account after 45 years? The balance in the account in 45 years would be million SEK.
c. Assume as in b. a first yearly payment of 8 000 and yearly increase of the amount of 4%. What would the final payment into this pension account be?
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