To supplement your planned retirement, you estimate that you need to accumulate $220,000 in 42 years. You

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To supplement your planned retirement, you estimate that you need to accumulate $220,000 in 42 years. You plan to make equal annual end-of-year deposits into an account paying 8 % annual interest.

a. How large must the annual deposits be to create the $220,000 fund in 42 years?

b. If you can afford to deposit only $600 per year into the account, how much will you have accumulated by the end of the forty-second year?

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Introduction to Corporate Finance What Companies Do

ISBN: 978-1111222284

3rd edition

Authors: John Graham, Scott Smart

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Question Posted: Mar 26, 2015 06:19 AM

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To supplement your planned retirement, you estimate that you need to accumulate $220,000 in 42 years. You

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a PMT FVA 42 10 8 42 1 08 PMT 220000 ...View the full answer

Introduction to Corporate Finance What Companies Do

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