Question

Andrea is 40 years old today and she wishes to accumulate $2,000,000 by her 65th birthday so she can retire to a beach in Florida. She wishes to accumulate this amount by making equal deposits on her fortieth through her sixty fourth birthdays.

Compute the annual deposit Andrea must make if the fund will earn 6% interest compounded annually. (Round factor values to 5 decimal places and final answer to 0 decimal places).

Annual deposit: $

Answer 1

$159, 358 is the amount need to be deposit annually.

A Let Amount to be deposit Annualy = 2 Rate of Interest = 64.p.a. current age = 40 years Accumulated Amount = $2,000,000 Daumulated amount = amount to be deposit Annualy a Acumulaton factor X 2,000,000 = 2 X 2,000,ooo = a × ( 0.06 x = 2,000,000 12.55 [x = 159358] ☆ So Annual amount to be deposit ضد و 59 , 38