Question #3678390

how much to deposit yearly in order to meet my goal? (finance homework help)!?

sandy is currently 25 year old. She has developed a lifetime budget that includes $50,000 at age 40 for a college fund for her kids and $25,000 per year for 20 years to supplement her retirement, the first payment on her 60th birthday and the last payment on her 79th birthday. She opens an investment account on her 25th birthday that pays 9% interest compounded annually. She wants to deposit an equal annual amounts into the account every year on her birthday, starting today (her 25th birthday) and continuing till she is 40 years old. (last deposit made on 40th bday). How much will each deposit have to be if she wants to meet her goals?

2013-03-20 19:07:19

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