Equal annual saving that will compound to the required amount. Annuity : It is an agreement under which a person pays the lump sum payment or number of small transactions and in return, he got the amount at later date or upon annuitization. The purpose of annuity is not to break the flow of income after retirement.

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Chapter 5, Problem 40P

Summary Introduction

To calculate: Equal annual saving that will compound to the required amount.

Annuity:

It is an agreement under which a person pays the lump sum payment or number of small transactions and in return, he got the amount at later date or upon annuitization. The purpose of annuity is not to break the flow of income after retirement.

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