How much must you put into your investment account

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Reference no: EM131925225

Question: You are 21 today want to retire at age 60. Starting with the date of your retirement, you would like to have a growing annuity ($15,000 payment on the day of your retirement and growing by 3% each year thereafter) for 25 years. You will inherit $10,000 from your long lost uncle when you turn 40 and will save that money and incorporate it (and its interest income) into your financial plan. You lose $5,000 at the casino at age 48. Assume an interest rate of 7.5% for all periods? How much must you put into your investment account today to achieve your goal?

Reference no: EM131925225

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