You wish to have $10,000 per year as a retirement supplement for 20 years (from age...

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You wish to have $10,000 per year as a retirement supplement for 20 years (from age 65- 85). You are now 40 years old. How mu

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Answer 1

Answer #1

First, let's find the present value of the annuity in the year 65.

N = 20

I/Y = 12

PMT = 10,000

FV = 0

Compute PV

PV = -74,694.43624

Now with this as the FV, let's find the PMT

N = 25

I/Y = 12

PV = 0

FV = -74,694.43624

CPT PMT

PMT = 560.20

The closest answer is option a. $560.17

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Answer 2

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