A person joins a pension plan at age 35. How much will s/he have to pay into the pension fund each year in order to accumulate a balance of $250,000 by the time s/he retires (age 65)? Assume that the payments start on his/her 35 th birthday and the final payment is on his/her 60 th birthday. Interest rates are 7% compounded annually

Answer rating: 100% (QA)

ANSWER SOLUTION To calculate the amount that the person needs to pay annually into the pension fund ... View the full answer