2). How much must you save/deposit at the end of each year, beginning 1 year from...

 

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2). How much must you save/deposit at the end of each year, beginning 1 year from now, in order to accumulate $1,500,000 by the end of 30 years to cover your living expenses throughout your retirement? Assume the funds in your IRA earn 12% annually. Also, how much total interest has been earned on your savings? Note: This problem is the future value of an ordinary annuity (FVAord) and I am asking you to find the annual PMT (or C as our authors note in the text). Finally, please round your answer to the nearest whole dollar ($1). Annual Payments (PMT, of C). Total Interest Earned 2). How much must you save/deposit at the end of each year, beginning 1 year from now, in order to accumulate $1,500,000 by the end of 30 years to cover your living expenses throughout your retirement? Assume the funds in your IRA earn 12% annually. Also, how much total interest has been earned on your savings? Note: This problem is the future value of an ordinary annuity (FVAord) and I am asking you to find the annual PMT (or C as our authors note in the text). Finally, please round your answer to the nearest whole dollar ($1). Annual Payments (PMT, of C). Total Interest Earned

Answer rating: 100% (QA)

SOLUTION a To find the annual payments PMT or C we can use the formula for the future value ... View the full answer