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How to find 3.9927? by using what table?

How to find 3.9927? by using what table?


You believe that you will need 25,000 dollars a year for 5 years in retirement. If you are 30 today, how much must you save each year to meet your retirement goal if you plan to retire at 65? (Assume a 8 percent annual interest rate)

Given : FV = ? , CF = ?, N = 35 , i = 8%

Solution :

Step 1 : Find the PV of 25,000 as on 65th Year

= 25,000 x 3.9927 = 99,817.50

Step 2 : Find the CF using the FV obtained from Step 1

= 99,817.50 = CF x {[(1+0.08)^35] - 1}/0.08 = 579.2674

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