Question

#5 unanswered Derek plans to retire on his 65th birthday. However, he plans to work part-time until he turns 74.00. During these years of part-time work, he will neither make deposits to nor take withdrawals from his retirement account. Exactly one year after the day he turns 74.0 when he fully retires, he will wants to have $3,028,066.00 in his retirement account. He he will make contributions to his retirement account from his 26th birthday to his 65th birthday. To reach his goal, what must the contributions be? Assume a 6.00% interest rate. not submitted Attempts Remaining: Infinity Submit Answer format: Currency: Round to: 2 decimal places.

Answer 1

Contribution per year FVA:([(1+r)^n-1]=r) Here, 6% 40 1 A Interest rate per annum B Number of years C|Number of payments per per annum A:C Interest rate per period (r) BxC Number of periods (n) Future value of annuity (FVA) 6% 40 1,690,856.24 =3028066/(1+6%)^10 Contribution per year $ 10,925.53 1690856.24:(((1+6%)^40-1):6%)

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