How large must the annual deposits be to create fund

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Reference no: EM13332825

To supplement your planned retirement in exactly 39 years, you estimate that you need to accumulate $380,000 by the end of 39 years from today. You plan to make equal, annual, end-of-year deposits into an account paying 6% annual interest.

A: How large must the annual deposits be to create the $380,000 fund by the end of 39 years.

B: If you can afford to deposit only $2,040 per year into the account, how much will you have accumulated by the end of 39 years?

Reference no: EM13332825

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