You wish to have $10,000 per year as a retirement supplement for 20 years (from age 65-85). You are now 40 years old. How much must you save each year for the next 25 years if you assume your savings will earn 12% annually?
A) $ 560.17
B) $1,499.99
C) $5,403.87
D) none of the above

Question

Quizplus · Accepted Answer

Solution:
PVAN = 10,000(7.469) = 74,690
FVAN = PMT(133.334)
PMT = 74,690/133.334 = $560.17

You Wish to Have $10,000 Per Year as a Retirement