YOU PLAN TO RETIRE IN 20 YEARS.WHEN YOU RETIRE,YOU WILL NEED $150,000 PER YEAR FOR TWENTY-FIVE YEARS WITH THE FIRST PAYMENT NEDDED AT T=21.YOU EXPECT TO RECEIVE $50.000 FROM A TRUST AT T=15 WHICH YOU WILL DEPOSIT IN YOUR RETIREMENT ACCOUNT.AT T=10 ,YOU PLAN TO TAKE A WORLD CRUISE THAT WILL COST YOU $55,000 TO BE PAID OUT OF THE RETIREMENT ACCOUNT.YOU PLAN TO MAKE NINTEEN EQUAL DEPOSITS BEGINNING AT THE END OF THE SECOND YEAR INTO THIS ACCOUNT.IF THE ACCOUNT PAYS INTEREST AT 10% WHAT SHOULD BE EGUAL ANNUAL DEPOSITS.© BrainMass Inc. brainmass.com February 24, 2021, 2:33 pm ad1c9bdddf
First, calculate the present value of all amounts at the end of year 20
For the $150,000 per year for 25 years,
Payment = 150,000, Rate = 10%, N=25, FV=0
By a financial calculator, PV1 ...