Job to give him time to develop and launch a new product

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Reference no: EM131308291

Kal would like to work for a few years and then leave his job to give him time to develop and launch a new product. Kal would like to make 8 equal annual deposits so he can have enough to live on while he develops his product. He would like to withdraw $32975 at the end of year 9, with subsequent withdrawals decreasing by $640 over the previous year. He plans to give himself 5 years to realize his dream before he must go back to full-time employment. How much will Kal need to deposit each year for 8 years to reach his goal? Use an interest rate of 8% compounded annually.

Reference no: EM131308291

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