FV and PV of an Annuity
Suppose you expect to live for 20 years after retiring at age 65. You would like to save enough money to have $30,000 per year to live on during your retirement. Currently, at age 30, you would like to start saving a fixed amount each year to fund this retirement plan. How much do you need to save each year to reach your goal? (Assume all annuity payments are end-of-period, ordinary annuity payments, and use a 7% interest rate, compounded annually, in your calculations).
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