You are 30 years old and you want to retire at age 60 with $1.5 million.You are going to make equal annual deposits into your savings account at the end of each year in order to save up this money.Your savings account pays 8% interest.What amount must you deposit each year?
A) $13,241.15
B) $12,160.93
C) $14,227.80
D) $13,274.34
E) $14,506.85

Question

Quizplus · Accepted Answer

FV = PMT × 11ea7fdb_fc16_818c_a768_b7c63e927fa1_TB2902_11 PMT = FV / 11ea7fdb_fc16_818d_a768_01d84847e590_TB2902_11 PMT = 1,500,000 / 11ea7fdb_fc16_818e_a768_d7062322ef24_TB2902_11 = $13,241.15
Using a financial calculator:
N = 30, I/Y = 8, PV = 0, FV = -1,500,000, cpt PMT = $13,241.15

You Are 30 Years Old and You Want to Retire