How many years required to invest money to supplement plan

Reference no: EM13259229

Starla has decided to retire in 12 years. She has $44,000available today and wants to invest the money to supplement herpension plan.

A. Assume Starlawants to accumulate $100,000by her retirement date. Will sheachieve her goal if she invests $44,000 today and earns 7%?

B. If Starlainvests a total of $44,000 through a series of 12 equal annualinstallments instead of a single amount, would Starla accumulatethe desired $100,000? The first investment would be made one yearfrom today. Show calculations and explain what you find.

C. If the amoun tcalculated in part A does not equal $100,000 approximately how manyyears would be required, assuming the same interest and equalannual deposits as above.

Reference no: EM13259229

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