Duplicate Question
The question on this page has been marked as a duplicate question.
Original Question
Meg's pension plan is an annuity with a guaranteed return of 6% per year (compounded quarterly). She would like to retire with...Asked by Robertta
Meg's pension plan is an annuity with a guaranteed return of 7% per year (compounded quarterly). She would like to retire with a pension of $20,000 per quarter for 15 years. If she works 31 years before retiring, how much money must she and her employer deposit each quarter?
Answers
Answered by
Melissa
1.) PMT(1-(1+r/m)^-mt/(r/m)
20,000(1-(1+0.07/4)^(-4*15))/(0.07/4) =739279.71
2.) Plug back into FV
739279.71(0.07/4)/((1+0.07/4)^4*31-1)= 1703.31
Final answer= 1703.31 (rounded to the nearest cent)
20,000(1-(1+0.07/4)^(-4*15))/(0.07/4) =739279.71
2.) Plug back into FV
739279.71(0.07/4)/((1+0.07/4)^4*31-1)= 1703.31
Final answer= 1703.31 (rounded to the nearest cent)
Answered by
Ann
Melissa idk who you are, but I have been working on this problem for my homework for over an hour and your comment is what finally got me to the right answer. Thank you for your service