Find total amount of interest the client will earn

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Reference no: EM131538190

You are working for a finance firm and a client comes to you and wants to know how much money they should put in an annuity (which earns 2.4% interest compounded quarterly) at the end of each three months for the next 45 years. Their goal is that when they retire at the end of 45 years, they would like the quarterly withdrawals from the annuity to total $60,000 per year and the annuity to last for the next 25 years. You are to determine the amount which your client needs to deposit into the annuity at the end of each three months for the next 45 years so that they can meet their retirement goal. Do the following:

A. Show all your work that you used to answer this problem. Label the steps and important values as you solve the problem. When you use the TVM Solver, show all variables and the values you entered/solved for.

B. Find the total amount of interest the client will earn (from the time they start contributing to the account to when they make the last withdrawal). Show how you arrived at the answer.

Reference no: EM131538190

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