How much will be your retirement payment

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Assume you are 30 years old and you plan to accumulate $1 million by your retirement date, which is 30 years from now. Also, assume that you plan to live for 25 years after your retirement - that is until age 85. You plan to make 30 annual deposits of equal amounts in your bank to save for retirement. The bank pays 10% interest annually.

Assume inflation is 0%

How much do you plan to deposite annually to accumulate $1 million for your retirement?

How much will be your retirement payment (benefit)?

What factor(s) can you change to reduce your annual deposit while improving your annual retirement benefit?

Show work and descriptions.

 

Reference no: EM13262633

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