10. Susan Robinson is planning for her retirement . She is 30 years old today and would like to have $ 600,000 when she turns 55. She estimates that she will be able to earn a 9 percent rate of return on her retirement investments over time ; she wants to set aside a constant amount of money every year ( at the end of the year ) to help achieve her objective . How much money must Robinson invest at the end of each of the next 25 years to realize her goal of $ 600,000 at the end of that time ?

Question

10. Susan Robinson is planning for her retirement . She is 30 years old today and would like to have $ 600,000 when she turns 55. She estimates that she will be able to earn a 9 percent rate of return on her retirement investments over time ; she wants to set aside a constant amount of money every year ( at the end of the year ) to help achieve her objective . How much money must Robinson invest at the end of each of the next 25 years to realize her goal of $ 600,000 at the end of that time ?

EBK CONTEMPORARY FINANCIAL MANAGEM

chapter 5 problem 10p

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