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(Solving for PMT of ordinary annuity) you want to have $50,000 by saving at the end...

(Solving for PMT of ordinary annuity) you want to have $50,000 by saving at the end of each of the next 10 years. If the opportunity cost of capital (interest rate) is 10% per year, compounded annually, how much must you save annually?

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Answer #1

Compute for PMT in a financial calculator,

Punch in FV=50000

N=10

I/Y=10%

PMT will be 3137.27

Or solve using excel:

=PMT(10%,10,,50000)

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