How big should abebis equal investments be

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Reference no: EM13722854

Abebi, who has just celebrated her 28th birthday, will retire on her 58th birthday, and she has just set up a retirement plan to pay her income starting on her retirement day, and to continue paying for 19 more years. Abebi's goal is to receive $110,000 for each of these twenty years. In creating her retirement account, Abebi has committed to set aside equal investments at the end of each year, for the next 29 years starting on her 29th birthday. If the annual interest rate is 8%, how big should Abebi's equal investments be?

Reference no: EM13722854

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