Question

You want to have $2,700,000 at the end of 26 years. You have $5,000 to invest...

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?

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Homework Answers

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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