Future value annuity based on this new time frame

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Reference no: EM131884223

Determine the annuity size needed for retirement and how to achieve that goal.

1) Taking into account inflation, possible needs, and retirement home costs (research may be needed), determine the monthly payment you might require from a retirement annuity. Also research a reasonable rate for a retirement annuity and determine the length of time you would require these payments. Present your rationale for the size of your monthly payment, length of payment, and interest rate.

2) State the present value of your retirement annuity. Include the formula used.

3) Taking into account the timeframe (starting now) you have to save for retirement, the present value of your retirement annuity, and an appropriate interest rate (research may be needed), determine the required monthly payments (deposited) needed to be invested over the next several years to have the annuity needed. Also state with formula was used.

4) Is that size of payment (deposit) possible starting this month? Let's assume no and determine when you will be able to start making deposits near that amount. Recalculate the deposits of the future value annuity based on this new time frame.

5) Provide any references used during your project. Write (at least) a paragraph reflection on this project.

Age: 28

Retirement Age: 65

Inflation Rate: 3%

Interest Rate: 4%

Reference no: EM131884223

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