Determining the retirement annuity

Reference no: EM1329823

You wish to retire after 30 years, at which time you want to have accumulated enough money to receive an annuity of $60,000 a year for 22 years of retirement. During the period before retirement, you can earn 8% annually, and after retirement you can earn 6% on your money.

a) What annual contributions to the retirement fund will allow you to receive the $60,000 annually?

b) What annual contributions are required if the contributions are made at the beginning of each year?

Note: There are solutions within the database for this type of question however, each OTA uses a different formula to calculate and the answers appear to be different. I would like to know the steps I would take using a financial calculator.

Reference no: EM1329823

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