Question
You turned 20 today and you want to retire on your 67 th birthday. Starting with the day of your retirement, you would like to
You turned 20 today and you want to retire on your 67th birthday. Starting with the day of your retirement, you would like to have a growing annuity with a $159,331.43 first payment on the day of your retirement and growing by 3% each year thereafter for a total of 25 years of payments. You will start saving with equal annual deposits into an investment account beginning in one year from today and ending after 26 total deposits. Assume a discount rate of 10%. What is the amount of that annual deposit so that you have enough money to fund your retirement plan? Use correct symbol and round to nearest dollar amount ending in 000. No decimal places. ($6,000 would be the form of a correct answer).
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