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You plan to retire in year 20 Your retirement will last 25 years starting in year...

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Finance

You plan to retire in year 20
Your retirement will last 25 years starting in year 21
You want to have $50,000 each year of your retirement.
How much would you have to invest each year, starting in one year,for 15 years , to exactly pay for your retirement ,if yourinvestments earn 6.00% APR (compounded annually)?

Answers:

$21,349

$21,546

$20,930

$20,520

Answer & Explanation Solved by verified expert
3.7 Ratings (335 Votes)
Annuity starting after retirement P 5000000 Time in years n 25 interest rate i 6 or 006 Present Value of annuity formula    See Answer
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Transcribed Image Text

You plan to retire in year 20Your retirement will last 25 years starting in year 21You want to have $50,000 each year of your retirement.How much would you have to invest each year, starting in one year,for 15 years , to exactly pay for your retirement ,if yourinvestments earn 6.00% APR (compounded annually)?Answers:$21,349$21,546$20,930$20,520

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