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How much will each deposit have to be

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Question - You are currently 25 years of age. You have developed a lifetime budget that includes Rs500,000 at age 40 for a college fund for your kids and Rs250,000 per year for 20 years to supplement your retirement, the first payment on your 60th birthday and the last payment on your 79th birthday. You open an investment account on your 25th birthday that promises to pay 9% interest compounded annually. You want to deposit equal annual amounts into the account every year on your birthday, starting today (your 25th birthday) and continuing until you are 40 years old (i.e., the last deposit is made on your 40th birthday). How much will each deposit have to be if you want to meet your financial goals?

Reference no: EM133035409

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