Macon would like to begin planning for retirement. He has as of his 60th birthday collected $200,000 which he plans to deposit in a bank account earning 8% per year compounded yearly. Macon is also willing to begin saving an amount on his 61st birthday, and increase that amount by 5% every year. He would like to avail $74,000 on his 70th birthday and keep getting an amount greater than that by 15% every year till his 75th birthday. How much money should he deposited on his 61st birthday?
Macon would like to begin planning for retirement. He has as of his 60th birthday collected $200,000 which he plans to deposit in a bank account earning 8% per year compounded yearly. Macon is also willing to begin saving an amount on his 61st birthday, and increase that amount by 5% every year. He would like to avail $74,000 on his 70th birthday and keep getting an amount greater than that by 15% every year till his 75th birthday. How much money should he deposited on his 61st birthday?
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 10P
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