Question

You want to have $2,700,000 at the end of 26 years. You have $5,000 to invest now, and you will receive $90,000 at the end of 8 years. In addition, you plan to invest an equal amount at the end of every year over the next 26 years to reach your goal. If the annual rate of interest is 7.80% , how much do you have to invest annually?

Answer #1

Enter the stroke in the financial calculator -

Calculate the Present value of $90000 today

FV = -90000

N = 8

I/Y = 7.8

CPT -PV = 49350.60

This 49350.60 is added to $5000 to calculate the annual amount
invested each year

= 54350.60

ENter the stroke in the financial calculator -\

PV = -54350.60

FV = 2700000

N = 26

I/Y = 7.8

CPT -PMT = 29879.13

**You have to invest anually 29879.13**

**I hope this clear your doubt.**

**Feel free to comment if you still have any query or need
something else. I'll help asap.**

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