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An engineer planning for retirement decides that she wants to have income of $100,000 per year for 20 years with the first withdrawal beginning 30 year from now. If her retirement account earns interest at 8% per year, the annual amount she would have to deposit 29 years beginning 1 year from now is.

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Solution Summary

Help is given to calculate the value of funds needed to support the retirement annuity.

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First calculate the value of funds needed to support the retirement annuity:
C=$100,000
n=20
r=8%
Since first payment is made at the beginning of 30th year, this is annuity in ...

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