Answer:
The real amount must you deposit each year to achieve your goal is $1,682.0610
Explanation:
In order to calculate the real amount must you deposit each year to achieve your goal first we have to calculate the real rate as follows:
Real rate=(1+nominal rate)/(1+inflation rate)-1
=(1+0.14)/(1+0.03)-1
=(1.14/1.03)-1
0.10679611(Approx)
So, the real amount must you deposit each year to achieve your goal is calculated by the following formula:
Future value of annuity=Annuity[(1+rate)^time period-1]/rate
$2,500,000=Annuity[(1+
0.10679611)^50-1]/
0.10679611
$2,500,000=Annuity*1,486.27188043
Annuity=$2,500,000/1,486.27188043
Annuity=$1,682.0610(Approx).
The real amount must you deposit each year to achieve your goal is $1,682.0610
