First annual retirement payment

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Reference no: EM131020339

Mel plans to save 10,200 dollars per year in his retirement account for 6 years. His first savings contribution to his account is expected in 1 year. Mel expects to earn 7.79 percent per year in his account. He plans to retire in 6 years. In retirement, Mel plans to withdraw 19,400 dollars per year for as long as he can. How many payments of 19,400 dollars can Mel expect to receive in retirement if his first annual retirement payment of 19,400 dollars is received immediately after he retires?

Reference no: EM131020339

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