You wish to retire in 10 years, at which time you want to have accumulated enough money to receive an annual annuity of $13,000

Question

3 years ago

13

You wish to retire in 10 years, at which time you want to have accumulated enough money to receive an annual annuity of $13,000

for 15 years after retirement. During the period before retirement you can earn 9 percent annually, while after retirement you can earn 11 percent on your money.

Business

1 answer:

nexus9112 [7] · Answer 1 · 2022-04-02T21:00:57+03:00

Answer:

Computation of contribution to retirement fund

Annual payment that the investor wants to receive after retirement = 13000

Number of years after retirement = 15

Interest rate = 0.11

Value of the fund at 12th year (Use Present Value Formula) = -93,481.30

Years remaining to retirement = 10

Interest rate = 0.09

Annual contribution upto retirement (Use PMT Formula) = -14,566.27