Compute the amount of annual contributions

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Reference no: EM13108033

payment = $4,000 interest rate =10% number of periods = 20

Stressed and penniless after months of day trading, Mr. Baruch decides to invest his savings into a conservative growth mutual fund. He plans to retire in 30 years and wants to make annual deposits into his IRA in order to accumulate a sum of $450,000 at the end of the 30 years. Mr. Baruch expects to earn 10% per year, on average, in his mutual fund. What should be the amount of Baruch's annual contributions?

Reference no: EM13108033

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