Question:You are currently 25 years of age. You have developed a
lifetime budget that includes $50,000...
Question
You are currently 25 years of age. You have developed a
lifetime budget that includes $50,000...
You are currently 25 years of age. You have developed a
lifetime budget that includes $50,000 at age 40 for a college fund
for your kids and $25,000 per year for 20 years to supplement your
retirement, the first payment on your 60th birthday and
the last payment on your 79th birthday. You open an
investment account on your 25th birthday that promises
to pay 9% interest compounded annually. You want to deposit equal
annual amounts into the account every year on your birthday,
starting today (your 25th birthday) and continuing until
you are 40 years old (i.e., the last deposit is made on your
40th birthday). How much will each deposit have to be if
you want to meet your financial goals?