o supplement your planned retirement in exactly 30 years, you estimate that you need to accumulate $1 million by the end of 30 years from today. You plan to make equal annual end-of-year deposits into an account paying 4 percent annual interest. a. How large must the annual deposits be to create the $1 million amount by the end of 30 years? b. If you can afford to deposit only $5,000 per year into the account, how much will you have accumulated by the end of the 30 years?
o supplement your planned retirement in exactly 30 years, you estimate that you need to accumulate $1 million by the end of 30 years from today. You plan to make equal annual end-of-year deposits into an account paying 4 percent annual interest. a. How large must the annual deposits be to create the $1 million amount by the end of 30 years? b. If you can afford to deposit only $5,000 per year into the account, how much will you have accumulated by the end of the 30 years?
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 44P
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To supplement your planned retirement in exactly 30 years, you estimate that you need to accumulate $1 million by the end of 30 years from today. You plan to make equal annual end-of-year deposits into an account paying 4 percent annual interest.
a. How large must the annual deposits be to create the $1 million amount by the end of 30 years?
b. If you can afford to deposit only $5,000 per year into the account, how much will you have accumulated by the end of the 30 years?
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