calculating future value of retirement account in which you deposit $2,000 a year for 30 years with an annual interest rate of 7 percent?

Answer 1

Jenny intends to retire in 20 years. Upon retirement, she will require a yearly cash flow of $80,000 for
25 years to support her lifestyle (yearly cash flows assumed to occur at the end of each year).
Anticipating her retirement plan, she started investing $6,000 per year five years ago and will continue to do so for 20 more years. How much more will Jenny have to invest each year for the next 20 years to have the necessary funds for her retirement? Use a 10% per year discount rate throughout this problem (for discounting or compounding).