Lisa Simpson wants to have $1,900,000 in 60 years by making equal annual end-of-the-year deposits into...

Question

Question

Lisa Simpson wants to have $1,900,000 in 60 years by making equal annual end-of-the-year deposits into...

Lisa Simpson wants to have $1,900,000 in 60 years by making equal annual end-of-the-year deposits into a tax-deferred account paying 9.75 percent annually. What must Lisa's annual deposit be?

business finance

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

Desired sum at retirement = $1,900,000
Time to retirement = 60 years
Annual interest rate = 9.75%

Let annual deposit be $x

$x*1.0975^59 + $x*1.0975^58 + … + $x*1.0975 + $x = $1,900,000
$x * (1.0975^60 - 1) / 0.0975 = $1,900,000
$x * 2,714.12005 = $1,900,000
$x = $700.04

So, annual deposit is $700.04

Add a comment

Answer 2

Similar Homework Help Questions

Lisa Simpson wants to have $1,100,000 in 55 years by making equal annual end-of-the-year deposits into...

Lisa Simpson wants to have $1,100,000 in 55 years by making equal annual end-of-the-year deposits into a tax-deferred account paying 8.50 percent annually. What must Lisa's annual deposit be? The amount of Lisa's annual deposit must be $_____.
Lisa Simpson wants to have $1.9 million in 35 years by making equal annual end-of-the-year deposits...

Lisa Simpson wants to have $1.9 million in 35 years by making equal annual end-of-the-year deposits into a tax-deferred account paying 9.25 percent annually. What must Lisa's annual deposit be? The amount of Lisa's annual deposit must be $____.
Lisa Simpson want to have $1,000,000 in 45 years by making equal annual end-of-the-year deposits into...

Lisa Simpson want to have $1,000,000 in 45 years by making equal annual end-of-the-year deposits into a tax deferred account paying 9.50 % annually. What must Lisa's annual deposit be? Que: The amount of Lisa's annual deposit must be ? P6-34 (similar to) (Related to Checkpoint 6.1) (Annuity payments) Lisa Simpson wants to have $1,000.000 in 45 years by making equal annual end-of-the-year depodts into a tax deferred account paying 9.50 percent annualy The amount of Lisa's annual deposit must...

(Related to Checkpoint 6.1) (Annuity payments) Lisa Simpson wants to have $1,700,000 in 30 years by...

(Related to Checkpoint 6.1) (Annuity payments) Lisa Simpson wants to have $1,700,000 in 30 years by making equal annual end-of-the-year deposits into a tax-deferred account paying 8.50 percent annually. What must Lisa's annual deposit be? The amount of Lisa's annual deposit must be $ (Round to the nearest cent.) (Related to Checkpoint 6.1) (Annuity payments) Lisa Simpson wants to have $1,700,000 in 30 years by making equal annual end-of-the-year deposits into a tax-deferred account paying 8.50 percent annually. What must...
Simpson wishes to have 1,100,000 in 35 years by making annual end-of-the-year deposits into a tax-deferred...

Simpson wishes to have 1,100,000 in 35 years by making annual end-of-the-year deposits into a tax-deferred account paying 11.75% annually. what must lisa's deposit be? the deposit must be $___. (round to the nearest cent)
You would like to save up $1,000,000 in 45 years by making equal end of the...

You would like to save up $1,000,000 in 45 years by making equal end of the year deposits into a tax-deferred account paying 6% annually. What must your annual deposit equal to achieve this goal?

You plan to accumulate $271,000 over a period of 18 years by making equal annual deposits...

You plan to accumulate $271,000 over a period of 18 years by making equal annual deposits in an account that pays an annual interest rate of 11% (assume all payments will occur at the end of each year). What amount must you deposit each year to reach your goal? $58,933.27 $4,844.52 $41,414.81 $5,377.42
You plan to accumulate $271,000 over a period of 18 years by making equal annual deposits...

You plan to accumulate $271,000 over a period of 18 years by making equal annual deposits in an account that pays an annual interest rate of 11% (assume all payments will occur at the end of each year). What amount must you deposit each year to reach your goal? $58,933.27 $4,844.52 $41,414.81 $5,377.42 $4,263.18
You plan to accumulate $133,000 over a period of 14 years by making equal annual deposits...

You plan to accumulate $133,000 over a period of 14 years by making equal annual deposits in an account that pays an annual interest rate of 12% (assume all payments will occur at the beginning of each year). What amount must you deposit each year to reach your goal? $3,226.05 $4,105.88 $27,214.44 $38,726.14 $3,665.96

Lisa Simpson wants to have $1,900,000 in 60 years by making equal annual end-of-the-year deposits into...

Homework Answers

Add Answer to:
Lisa Simpson wants to have $1,900,000 in 60 years by making equal annual end-of-the-year deposits into...

Post as a guest

Earn Coins

Lisa Simpson wants to have $1,100,000 in 55 years by making equal annual end-of-the-year deposits into...

Lisa Simpson wants to have $1.9 million in 35 years by making equal annual end-of-the-year deposits...

Lisa Simpson want to have $1,000,000 in 45 years by making equal annual end-of-the-year deposits into...

(Related to Checkpoint 6.1) (Annuity payments) Lisa Simpson wants to have $1,700,000 in 30 years by...

Simpson wishes to have 1,100,000 in 35 years by making annual end-of-the-year deposits into a tax-deferred...

You would like to save up $1,000,000 in 45 years by making equal end of the...

You plan to accumulate $271,000 over a period of 18 years by making equal annual deposits...

You plan to accumulate $271,000 over a period of 18 years by making equal annual deposits...

You plan to accumulate $133,000 over a period of 14 years by making equal annual deposits...

Lisa Simpson wants to have ​$1,900,000 in 60 years by making equal annual​ end-of-the-year deposits into...

Homework Answers