How do find the future value of an ordinary annuity

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Problem 1: Find the future value of an ordinary annuity that pays $ 2,350 at 6% over 6 years. It also determines the future value if this were a prepayment annuity.

Problem 2: Mr. Del Valle is 54 years old and plans to retire in 8 years. You want to live at least 20 years after you retire. He has $ 125,000 in savings and expects to earn 7% annual interest. He hopes to have an income of $ 45,000, the same as he currently receives from the work he does. Del Valle will begin receiving your benefit after 8 years biweekly (24 payments per year) after you retire. Annual inflation is expected to reach 5%. Determine how much Mr. Del Valle must save over the next 8 years to meet the retirement goal.

Reference no: EM132837406

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