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2 September, 22:49

You wish to retire in 10 years, at which time you want to have accumulated enough money to receive an annual annuity of $13,000 for 15 years after retirement. During the period before retirement you can earn 9 percent annually, while after retirement you can earn 11 percent on your money.

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  1. 3 September, 01:15
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    Computation of contribution to retirement fund

    Annual payment that the investor wants to receive after retirement = 13000

    Number of years after retirement = 15

    Interest rate = 0.11

    Value of the fund at 12th year (Use Present Value Formula) = - 93,481.30

    Years remaining to retirement = 10

    Interest rate = 0.09

    Annual contribution upto retirement (Use PMT Formula) = - 14,566.27
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