Edna is 30 and plans to retire at 60. That's 30 years of saving for retirement....
Edna is 30 and plans to retire at 60. That's 30 years of saving for retirement. Edna will make a deposit into the retirement savings account once a year at the end of the year. Each deposit will be the same amount.
Once she retires, Edna will use the proceeds, plus interest to live for 40 years during retirement. Edna wants to plan for a retirement pay of $150,000 at the end of each year. The discount rate is 10%.
Some time-value-of-money factors are available:
30 years 40 years
Present value of an ordinary annuity, 10% 9.427 9.779
Future value of an ordinary annuity, 10% 164.494 442.593
What yearly deposit should Edna make from age 30 to 60 to achieve her goal?
A. $150,000
B. $55,748
C. $8,917
D. $8,596
Homework Answers
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AS FOR GIVEN DATA..
Edna is 30 and plans to retire at 60. That's 30 years of saving for retirement. Edna will make a deposit into the retirement savings account once a year at the end of the year. Each deposit will be the same amount.
Once she retires, Edna will use the proceeds, plus interest to live for 40 years during retirement. Edna wants to plan for a retirement pay of $150,000 at the end of each year. The discount rate is 10%.
Some time-value-of-money factors are available:
30 years 40 years
Present value of an ordinary annuity, 10% 9.427 9.779
Future value of an ordinary annuity, 10% 164.494 442.593
What yearly deposit should Edna make from age 30 to 60 to achieve her goal
I HOPE YOU UNDERSTAND..
PLS RATE THUMBS UP..ITS HELPS ME ALOT..
THANK YOU...!!
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