Today youre 35 years old and you want to retire when you reach the age of 75, at that time you want to have 30,000 per year for the next 20 years. During Retirement years, your money can earn 3% interest. How much you need to save annually for the next 40 years given that you will save equal amounts every year that can earn 8% interest, to be able to retire at 75. All cash flows are end of year basis   Please solve using a finance calculator (Texas instruments BA ll plus)

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 3PB: Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate...
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Today youre 35 years old and you want to retire when you reach the age of 75, at that time you want to have 30,000 per year for the next 20 years. During Retirement years, your money can earn 3% interest. How much you need to save annually for the next 40 years given that you will save equal amounts every year that can earn 8% interest, to be able to retire at 75. All cash flows are end of year basis

 

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