Irene plans to retire on January 1, 2020. She has been preparing to retire by making annual deposits, starting on January 1, 1980, of 2400 dollars into an account that pays an effective rate of interest of 9.8 percent. She has continued this practice every year through January 1, 2001. Her goal is to have 1.4 million dollars saved up at the time of her retirement. How large should her annual deposits be (from January 1, 2002 until January 1, 2020) so that she can reach her goal? Answer = dollars.

CONCEPTS IN FED.TAX.,2020-W/ACCESS
20th Edition
ISBN:9780357110362
Author:Murphy
Publisher:Murphy
Chapter3: Income Sources
Section: Chapter Questions
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Irene plans to retire on January 1, 2020. She has been proparing to retire by making annual deposits, starting on
January 1, 1980, of 2400 dollars into an account that pays an effective rate of interest of 9.8 percent. She has continued this
practice every year through January 1, 2001. Her goal is to have 1.4 million dollars saved up at the time of her retirement. How
large should her annual deposits be (from January 1, 2002 until January 1, 2020) so that she can reach her goal?
Answer =
dollars.
Transcribed Image Text:Irene plans to retire on January 1, 2020. She has been proparing to retire by making annual deposits, starting on January 1, 1980, of 2400 dollars into an account that pays an effective rate of interest of 9.8 percent. She has continued this practice every year through January 1, 2001. Her goal is to have 1.4 million dollars saved up at the time of her retirement. How large should her annual deposits be (from January 1, 2002 until January 1, 2020) so that she can reach her goal? Answer = dollars.
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