Solution 6-8:
Required fund balance on June 30, 2020 = Present value of annual withdrawl = $19,700 * Cumulative PV Factor at 9% for 4 periods
= $19,700 * 3.23972 = $63,822
Required contribution in order to accumulate $63,822 = $63,822 / Cumulative FV factor at 9% for 4 periods
= $63,822 / 4.57313
= $13,956
I uppload the second picture by mistake Exercise 6-8 Alan Weatherspoon, a super salesman contemplating retirement...
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