Ozzy is working a tire factory that offers a pension in the form of an annuity that pays 5.5% interest compounded annualy. he wants to work for 30 years and then have a retirement income of $48000 at the end of the each year forever. his employer decides to make annual deposit starting one year from now, with a first payment of $K and then followed by subsequent deposits that decreases by $250 anuaaly into the pension fund. Calculate the value of K

Ozzy is working a tire factory that offers a pension in the form of an annuity that pays 5.5% interest compounded annualy. he wants to work for 30 years and then have a retirement income of $48000 at the end of the each year forever. his employer decides to make annual deposit starting one year from now, with a first payment of $K and then followed by subsequent deposits that decreases by $250 anuaaly into the pension fund. Calculate the value of K

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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A couple is saving for retirement with three different accounts. The table below shows the current balances in their accounts, along with their yearly contribution, and the yearly return on each account. The couple will retire in 24.00 years and pool the money into a savings account that pays 4.00% APR. They plan on living for 30.00 more years and making their yearly withdrawals at the beginning of the year. What will be their yearly withdrawal? Yearly Contribution $1,000.00 Account Fidelity Mutual Fund Vanguard Mutual Fund Employer 401k Balance $21,452.00 $183,845.00 $307,061.00 Submit Answer format: Currency: Round to: 2 decimal places. $10,000.00 $15,000.00 APR 7.00% 7.00% 6.00%

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