Dr. Dollar retires today and would like an income of $50,000 per year – paid annually- for the next 20 years. The payments begin one year from today. She expects to earn 4% per year compounded annually from her investment account. What must she deposit today, in her investment account, to achieve her targeted income of $50,000 per year?

Answer rating: 100% (QA)

The formula and calculations are as follows Effective annual interest rate 1 nominal rate number of ... View the full answer