Answered: Birthday of First Deposit Amount of…

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Finance

Birthday of First Deposit Amount of Required Annual Deposit 25 30 35 40 45 50 55 60 65 $1,000,000

Quickbooks Online Accounting

3rd Edition

ISBN:9780357391693

Author:Owen

Publisher:Owen

Chapter6: Investing And Financing Activities

Section: Chapter Questions

Problem 3.7C

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Question

Financial planners (and engineering economists) unanimously encourage people to start early in planning for retirement. To illustrate this point, they frequently produce a table similar to the one below. Fill in the blank cells in this table assuming that your goal is to have $1,000,000 on your 65th birthday and that deposits start on the birthday shown and continue annually in the same amount on each birthday up to and including your 65th birthday. Assume that interest is compounded annually at 10%/year.

Birthday of First Deposit Amount of Required Annual Deposit
25
30
35
40
45
50
55
60
65
$1,000,000

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