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Yeonjin9 Yeonjin9
wrote...
6 years ago
You decide to wait for five years before saving money toward retirement. You then wish to save a certain amount each year for 30 years, at which time you hope to have saved $1,500,000. If you invest in an account that earns 8% annual interest, how much must you invest each year to meet your goal? A timeline depicting this situation follows.
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wrote...
Staff Member
6 years ago
Let C be the amount we save each year. We know that C FVIFA8%,30 = $1,500,000

Solving for C gives C = $13,241

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