What amount of annual contributions to the retirement fund

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Question - Una Day is planning to retire in 15 years, at which time she hopes to have accumulated enough money to receive an annuity of $40,000 a year for 20 years of retirement. During her pre-retirement period she expects to earn 8 percent annually, while during retirement she expect to earn 10 percent annually on her money.

What amount will be needed in 15 years (at time of retirement).

What amount of annual contributions to the retirement fund are required for to achieve her objective and sleep well at night?

If she currently earns $40,000 a year will this amount be enough in retirement 15 years from now (briefly explain - no calculations are required).

Reference no: EM133161017

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