Question

1. Mateo has nothing saved for retirement. Mateo wants to receive 31,500 dollars each year for...

1. Mateo has nothing saved for retirement. Mateo wants to receive 31,500 dollars each year for 4 years during retirement. The first of these payments will be received in 4 years. Mateo can earn a return of 7.06 percent per year. How much does Mateo need to save each year for 4 years to have exactly enough to meet his retirement goal if he makes his first savings contribution in 1 year and all savings contributions are equal

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Answer #1
Step 1 present value of retirement withdrawal
put in calculator
FV 0
PMT -31,500
I 7.06%
N 4
compute PV $106,552.79
Step 2 computation of annual contribution
Put in calculator
FV ($106,552.79)
PV 0
I 7.06%
N 4
Compute PMT $23,977.37
ans = $23,977.37
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