EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN: 9781337514835
Author: MOYER
Publisher: CENGAGE LEARNING - CONSIGNMENT
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Chapter 5, Problem 39P
Summary Introduction

To determine: Amount accumulated by person T over the next 30 years.

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Onin plans on retiring on his 60th birthday. He wants to put the same amount of funds aside each year for the next 20 years, starting next year so he will be able to withdraw 40,000 per year for the next 20 years when he retires with his first withdrawal on his 61st birthday. He is 30 years old today. How much must he set aside each year for his retirement if he can earn 10% compounded semi annually on his funds?
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