Developed lifetime budget-investment account

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Question

Linda is currently 25 years old. Linda developed a lifetime budget that includes? $50,000 at age 40 for a college fund for her kids and? $25,000 per year for 20 years to supplement her retirement. The first payment for her retirement will be on her 60th birthday and the last payment will be on her 79th birthday.

Linda opened an investment account on her 25th birthday that promises to pay? 9% interest compounded annually. Linda plans to deposit equal annual amounts into the account every year on her? birthday, starting today? (her 25th? birthday) and continuing until she is 40 years old? (i.e., the last deposit is made on her 40th? birthday). How much will each deposit have to be if Linda wants to meet her financial? goals?

Reference no: EM133496026

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