Creating a retirement fund Personal Finance Problem To supplement your retirement, you estimate that you need to accumulate $250,000 exactly 35 years from today. You plan to make equal, end-of-year deposits into an account paying 9% annual interest. a. How large must the annual deposits be to create the $250,000 fund by the end of 35 years? b. If you can afford to deposit only $970 per year into the account, how much will you have accumulated in 35 years? a. The annual deposits to create the $250,000 fund by the end of 35 years should be $ (...) (Round to the nearest cent.)
Creating a retirement fund Personal Finance Problem To supplement your retirement, you estimate that you need to accumulate $250,000 exactly 35 years from today. You plan to make equal, end-of-year deposits into an account paying 9% annual interest. a. How large must the annual deposits be to create the $250,000 fund by the end of 35 years? b. If you can afford to deposit only $970 per year into the account, how much will you have accumulated in 35 years? a. The annual deposits to create the $250,000 fund by the end of 35 years should be $ (...) (Round to the nearest cent.)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Transcribed Image Text:Creating a retirement fund Personal Finance Problem To supplement your retirement, you estimate that you need to accumulate $250,000 exactly 35 years from today. You plan to make equal, end-of-year
deposits into an account paying 9% annual interest.
a. How large must the annual deposits be to create the $250,000 fund by the end of 35 years?
b. If you can afford to deposit only $970 per year into the account, how much will you have accumulated in 35 years?
a. The annual deposits to create the $250,000 fund by the end of 35 years should be $
(Round to the nearest cent.)
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