Question

You plan on buying yourself a retirement cabin in the Rocky Mountains 40 years from now....

You plan on buying yourself a retirement cabin in the Rocky Mountains 40 years from now. At an interest rate of 5 percent per year, how much must you invest each year (equal annual amounts beginning next year) to have $150,000 in your cabin fund in 40 years?

please solve using excel

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Homework Answers

Answer #1

Future Value to accumulate in 40 years = $150,000

Calculating the Equal Annual Payments at the end of each year using Excel "PMT" function:-

So, equal annual payments is $1241.72

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