Stuart allen realized at the age 62 that he had not yet started to plan for his retirement. He plans to retire at age 72 He wants to accumulate a fund that will allow him to remove 90,000 a year for 18 years, with the first payment starting at age 72, and the last payment at age 89. To prepare for this, stuart plans to make annual contributions into a retirement fund that has an annual rate of return of 9% compounded annually. ( the fund will also earn a rate of 9% during the years of his retirement)

Determine the amount of each annual contribution into the retirement fund, if the first contribution occurs on his 62nd birthday and the last contribution occurs on his 71st birthday.

amount of each annual contribution: $____

Answer rating: 100% (QA)

Calculation of amount that must available at 71st bir... View the full answer