Determine the present value of an annuity retirement

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Una Day is palnning to retire in 20 years, at which time she hopes to have accumulated enough money to receive an annuity of $32,000 a year for 25 years of retirement. During her pre-retirement period she expects to earn 8 percent annually, while during retirement she expects to earn 10 percent annually on her money.

Problem 1: What annual contributions to this retirement fund are required for Una to achieve her objective and sleep well at night?

Problem 2: Determine the present value of an annuity retirement. Determine the annual deposit into an account earning 8% that is necessary to accumulate $290,464 after 20 years.

Reference no: EM132785725

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