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Regarding the question, "Mr. Wilks is 30 years old today and wants to set aside an...

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Finance

Regarding the question, "Mr. Wilks is 30 years old today andwants to set aside an equal", which formula was used to arrive atthe amount that should be in the account at age 60? I started outusing the Present Value of Ordinary Annuity but I am stuck afterthat. I am not sure how to factor in the $550,000. Please bear inmind that I have to show working out and not allowed to use Excelwhen doing final exams. Could a more detailed, step-by-stepsolution be given, please? Thank You

Answer & Explanation Solved by verified expert
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To calculate a retirement planning problem without Excel the steps will be as following 1 The annual retirement requirement will be the annuity you can find its PV using the PV of ordinary annuity factor at given rate duration PV Present Value    See Answer
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Regarding the question, "Mr. Wilks is 30 years old today andwants to set aside an equal", which formula was used to arrive atthe amount that should be in the account at age 60? I started outusing the Present Value of Ordinary Annuity but I am stuck afterthat. I am not sure how to factor in the $550,000. Please bear inmind that I have to show working out and not allowed to use Excelwhen doing final exams. Could a more detailed, step-by-stepsolution be given, please? Thank You

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