Parker has nothing saved for retirement

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1. Parker has nothing saved for retirement. Parker wants to receive 35,310 dollars per year for 6 years during retirement. The first of these payments will be received in 5 years. Parker can earn a return of 17.8 percent per year. How much does Parker need to save each year for 4 years to have exactly enough to meet his retirement goal if he makes his first savings contribution in 1 year and all savings contributions are equal?

2. Mateo has nothing saved for retirement. Mateo wants to receive 33,600 dollars each year for 6 years during retirement. The first of these payments will be received in 4 years. Mateo can earn a return of 11.08 percent per year. How much does Mateo need to save each year for 4 years to have exactly enough to meet his retirement goal if he makes his first savings contribution in 1 year and all savings contributions are equal?

Reference no: EM131873188

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