How large must the annual deposits be

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Reference no: EM131334404

To supplement your planned retirement in exactly forty-two years, you estimate that you need to accumulate $220,000 by the end of forty-two years from today. You plan to make equal annual end-of-year deposits into an account paying 8 percent annual interest.

a. How large must the annual deposits be to create the $220,000 fund by the end of forty-two years?

b. If you can afford to deposit only $600 per year into the account, how much will you have accumulated by the end of the forty-second year?

Reference no: EM131334404

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