Question

# You want to retire in 46 years with \$10,000,000. You plan to start saving next year...

You want to retire in 46 years with \$10,000,000. You plan to start saving next year and then growing each retirement contribution by 1% per year. You are confident that you can compound your savings at 9% per year. How much must your first payment be?

(future value of growing annuity problem) - please show work

Using goal seek

first payment is 15656.72

 Future value of Growing annuity = P/(r - g) × [ (1+r)n - (1+g)n] P= Periodic payment 15,656.72 g= Growth rate 1% r= Rate of interest per period: Annual rate of interest 9.00000% Frequency of payment once in every 12 months Payments per year 12/ 12= 1 Interest rate per period 0.09/1= 9.00000% n= number of payments: Number of years 46 Payments per year 1 number of payments 46 Future value of annuity= 15656.72/(0.09 - 0.01) × [ (1 + 0.09 )^46 - (1+ 0.01)^46 ] Future value of annuity= 10,000,002.45

#### Earn Coins

Coins can be redeemed for fabulous gifts.

##### Need Online Homework Help?

Most questions answered within 1 hours.

##### Active Questions
• A gigantic warehouse stores approximately 40 million empty aluminum beer and soda cans.​ Recently, a fire...
• 5. There are many complaints from passengers about the late running of buses on a particular...
• (1 point) A survey of 1780 people who took trips revealed that 117 of them included...
• Implement the following circuit to test the characteristics of a D flip flop. Note: Using a...
• Next, suppose you add the unemployment rate, as a variable, to the regression model above and...
• In a recent random sample, where 600 adults were surveyed, 16.4% indicate that they have fallen...