terrichichester-BU250-unit8-assignment

# terrichichester-BU250-unit8-assignment - Challenge Problem...

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Challenge Problem \$2,000 at the end of each year for 20 years at a 6% annual interest.  Solving for future value PV= 0 PMT=  \$2,000  N= 20 years I= 6% FV=  \$73,571.18  future value of the investment.  lump sum invested to accumulate same retirement balance finding present value of lump sum investment FV=  \$73,571.18  N=  20 I=  6% PV=  \$22,939.84  Total to invest today for same retirement amount.  How much more will she invest in periodic payments? \$40,000  Total periodic payment 22,939.84 lump sum payment \$17,060.16  she will invest \$17,060.16 more in periodic payments in order to r

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20 years *\$2,000 per year = \$40,000 total periodic payments.   reach the same retirement amount.
Case study 11-2: Accumulating Money Part 1.  He decided to test the numbers by seeing how much he would be able to accumulate b Right now this means depositing \$1,000 at year end for 35 years.  Yearly deposit of \$1,000 at 5% compounded annually how much interest would he earn

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terrichichester-BU250-unit8-assignment - Challenge Problem...

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