Business, 11.02.2020 18:24, njohns5327home

You want to have saved $1,000,000 in 30 years by starting your savings today. How large of a payment do you have to make each year if the interest rate is 10%? Suppose your great-uncle is about ready to retire and talks with you about an option his financial planner has been discussing with him. The financial planner notes that a 25 year annuity ought to be sufficient for his remaining expected lifetime and explains the discount rate for the annuity he offers is 4.5% annually. What are the expected annual payments to your great-uncle if he uses his $ 1, 750,000 in savings to purchase the annuity? His first payment is expected to start one year from today.

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You want to have saved $1,000,000 in 30 years by starting your savings today. How large of a payment...