An Investor is celebrating his 50th Birthday today and wants to start saving for his anticipated retirement at age 65. He wants to be able to withdraw $15,000 from his savings account on each birthday for 20 years following his retirement, with the first withdrawl being made on his 66th birthday. After extensive research, the investor determines that he can deposit his money into an account that offers 5% interest per year ( compounded quarterly). He wants to make equal annual payments on each birthday into the account - the first payment on his 51st birthday, and the last on his 65th birthday. In addition, the investor’s employer will contribute $100 to the account at the end of every month as part of the company’s profit-sharing plan (a total of 180 contributions). What amount must the investor deposit personally each year on this birhday to enable him to make the desired withdrawals at retirement? A. $7,305 B. $9,411 C. $12,667 D. $15,549 … How did you guys figure this out? and Can this be done in 90 seconds? Thanks!
Only if i can get an autographed picture for my little bro. he’s a huge fan
will you hit # 600 in the next 90 hours?
is it B??
Sure I can send one over. Didn’t know he was a fan. The reports I write are lame and put people to bed. Glad to know to know that someone does appreciate my work.
C is the answer for every TVM problem, always.
If the other Griffey hits 600 within 90 hours, then I’ll pass the exam. … eventually
isn’t this level 1 stuff?
Level 1 correct? Beat it kid, now go back to L1. Just kidding…you do belong in L1, right? Either that or, dare I say, sounds like a CFP exam question.
whoops. sorry, level 1 stuff.