How much money must invest each year

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Question: Claude wishes to save money to provide for his own retirement and for the college education of his son. He will need $25,000 per year for each of four years starting 15 years from now. Claude also wishes to retire 31 years from today, and feels he needs retirement income of $100,000 per year for each of 25 years (the first $100,000 payment will be received 31 years from today). Assuming an interest rate of 9%, how much money must Claude invest each year (30 equal annual amounts beginning one year from now) to provide for his retirement and his son's education?

Reference no: EM131956161

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