Question

Derek plans to retire on his 65th birthday. However, he plans to work part-time until he turns 73.00. 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 73.0 when he fully retires, he will wants to have $3,292,433.00 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 8.00% interest rate.

Answer 1

32 8% 3292433 33 RATE 34 35 Amount required in 74th year 36 37 fv (Value of required amount in 65th year) 38 nper (26th year to 65th year) 39 lpv 1647036.208 40 ol 40 41 pmt (CONTRIBUTION) 6357.83

31 CALCULATIONS 32 33 RAT 0.08 34 35 Amount required in 74th year 3292433 36 37 fv (Value of required amount in 65th year) (I=L35/((1+L33)^9) 38 nper (26th year to 65th year) 40 39 L pv 40 pmt (CONTRIBUTION) | |=PMT(L33,L38,L39,-L37)