Today is your birthday and you decide to start saving for your retirement. You will retire on your 65th birthday and will need $70000 per year at the end of each of following 20 years. You will make a first deposit 1 year from today in an account paying 5% interest annually and continue to make an identical deposit each year up to and including the year you plan to retire. If an annual deposit of $6,800 will allow you to reach your goal, what birthday are you celebrating today?

Today is your birthday and you decide to start saving for your retirement. You will retire on your 65th birthday and will need $70000 per year at the end of each of following 20 years. You will make a first deposit 1 year from today in an account paying 5% interest annually and continue to make an identical deposit each year up to and including the year you plan to retire. If an annual deposit of $6,800 will allow you to reach your goal, what birthday are you celebrating today?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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