Leon Weatherspoon, a super salesman contemplating retirement on his fifty-fifth birthday, decides to create a fund on an 11% basis that will enable him to withdraw $14,170 per year on June 30, beginning in 2029 and continuing through 2032. To develop this fund, Leon intends to make equal contributions on June 30 of each of the years 2025-2028.
Leon Weatherspoon, a super salesman contemplating retirement on his fifty-fifth birthday, decides to create a fund on an 11% basis that will enable him to withdraw $14,170 per year on June 30, beginning in 2029 and continuing through 2032. To develop this fund, Leon intends to make equal contributions on June 30 of each of the years 2025-2028.
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
Problem 1PS
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Transcribed Image Text:Leon Weatherspoon, a super salesman contemplating retirement on his fifty-fifth birthday, decides to create a fund on
an 11% basis that will enable him to withdraw $14,170 per year on June 30, beginning in 2029 and continuing through 2032.
To develop this fund, Leon intends to make equal contributions on June 30 of each of the years 2025-2028.
(a)
Click here to view factor tables.
How much must the balance of the fund equal on June 30, 2028, in order for Leon to satisfy his objective? (Round factor
values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.)
Balance of the fund equal on June 30, 2028
$
LA
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