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You are planning for your retirement and want to have $1,500,000 by the time you retire...

You are planning for your retirement and want to have $1,500,000 by the time you retire 45 years from today. You also want to have $250,000 in 20 years to help fund your children's college education. What annual end of the year deposit would you have to make for 45 years into an account paying 8% compounded annually to meet your future goals?

A. 4,528

B. $3,881

C. $6,906

D. $8,311

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Answer #1

ANSWER: D. $8,311 Future value of $250,000 withdrawn in year 20 FV of cash flow = 250,000 X (1+0.08) -25 = 1,712, 118.80 Tota

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