Question

Home Book Store Instructors Independent Authors About A salesman with a marketing degree from the business school wants to retire at the age of 50. This is exactly 2500 years from today To retire at 50, the salesman believes he will need $3,503,598.00 in savings He wants to start a mutual fund and will make annual payments into the fund His first contribution will be today (annuity due) and his last contribution will be when he turns 49.(25,00 total payments). He thinks he can eam 1000% per year on average on his invested funds Whatl annual payment is required to reach his retirement goal? Answer Format: Currency: Round to: 2 decimal places Enter Answer Here Subrvit Answer ←Prev Problem t AllProblems →Ned Problem Contact Us Privacy Policy Tems Copyit 2019 Conley Smith Publishing Al Right reserved vered 4:11 pm

Answer 1

Let Annual Investment be 'x'
Annual Investment satrts from the age of Year-25
Age	Annual Investment		FVF @10%	Future value
25	x		10.83471	10.8347 x
26	x		9.849733	9.8497 x
27	x		8.954302	8.9543 x
28	x		8.140275	8.1403 x
29	x		7.40025	7.4003 x
30	x		6.7275	6.7275 x
31	x		6.115909	6.1159 x
32	x		5.559917	5.5599 x
33	x		5.05447	5.0545 x
34	x		4.594973	4.595 x
35	x		4.177248	4.1773 x
36	x		3.797498	3.7975 x
37	x		3.452271	3.4523 x
38	x		3.138428	3.1343x
39	x		2.853117	2.8531 x
40	x		2.593742	2.5937 x
41	x		2.357948	2.3579 x
42	x		2.143589	2.1436 x
43	x		1.948717	1.9487 x
44	x		1.771561	1.7716 x
45	x		1.61051	1.6105 x
46	x		1.4641	1.4641 x
47	x		1.331	1.331 x
48	x		1.21	1.21 x
49	x		1.1	1.1 x
50	0		1	0
Future value				108.1818 x
As per question, the equation is:
108.1818 x = 3503598
X = $ 32386.21
Annual Investment to be made: $ 32386.21