An engineer currently has nothing saved for his retirement, which will start 6 years from today. He wants to receive P68,500 each year for 5 years during retirement. The first of these payments will be received 6 years from today. He can earn a return of 7.6% per year in his account. How much does this engineer need to save each year for 6 years to have exactly enough to meet his retirement goal if he makes his first contribution to savings one year from today and all contributions are equal?

An engineer currently has nothing saved for his retirement, which will start 6 years from today. He wants to receive P68,500 each year for 5 years during retirement. The first of these payments will be received 6 years from today. He can earn a return of 7.6% per year in his account. How much does this engineer need to save each year for 6 years to have exactly enough to meet his retirement goal if he makes his first contribution to savings one year from today and all contributions are equal?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 35P

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