Lisa Simpson wants to havr $1,600,000 in 55 years by making equal annual end of the...

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Lisa Simpson wants to havr $1,600,000 in 55 years by making equal annual end of the...

Lisa Simpson wants to havr $1,600,000 in 55 years by making equal annual end of the year deposits into the tax deferred account paying 11.25 percent annually. What must Lisas annual deposit be?

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Answer 1

Answer #1

Future value of annuity=Annuity[(1+rate)^time period-1]/rate

1,600,000=Annuity[(1.1125)^55-1]/0.1125

1,600,000=Annuity*3119.700431

Annuity=1,600,000/3119.700431

which is equal to

=$512.87(Approx).

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Answer 2

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Lisa Simpson wants to havr $1,600,000 in 55 years by making equal annual end of the...

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Add Answer to: Lisa Simpson wants to havr $1,600,000 in 55 years by making equal annual end of the...

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