1. Suppose that you wish to receive 5,000 dollars, once a month, for 20 years after retirement. You also plan to invest once a month into your pension fund for 35 year before retirement. Your investment will start 35 years before the date of retirement, and will end one month before the date of retirement. The date of first payment to you will be one month after the date of retirement. Assuming that a fixed annual rate of 6% befor and after retirement is guaranteed by your pension company, what amount do you need t deposit each month? You have to use the Goal Seek function. In the following chart I randomly assumed that the monthly deposit before retirement is $300. My monthly payment received after retirement turned out to be $3,077.47. Use Goal Seek by setting cell D4 to value 5000. The monthly deposit will become $487.42. Annual Deposit Number of Years : Annual Rate FV

1. Suppose that you wish to receive 5,000 dollars, once a month, for 20 years after retirement. You also plan to invest once a month into your pension fund for 35 year before retirement. Your investment will start 35 years before the date of retirement, and will end one month before the date of retirement. The date of first payment to you will be one month after the date of retirement. Assuming that a fixed annual rate of 6% befor and after retirement is guaranteed by your pension company, what amount do you need t deposit each month? You have to use the Goal Seek function. In the following chart I randomly assumed that the monthly deposit before retirement is $300. My monthly payment received after retirement turned out to be $3,077.47. Use Goal Seek by setting cell D4 to value 5000. The monthly deposit will become $487.42. Annual Deposit Number of Years : Annual Rate FV

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter19: The Basic Tools Of Finance

Section: Chapter Questions

Problem 1CQQ

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