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ECBA 303-46 Week 2 Assignment template Write your name here: _________________________________________________ NOTE: Please save your file to submit...
a. How large a fund will you need when you retire in 20 years to provide the 30-year, $20K retirement annuity?
b. How much will you need today as a single amount to provide the fund calculated in part a if you earn only 9% per year during the 20 years preceding retirement?
c. What effect would an increase in the rate you can earn both during and prior to retirement have on the values found in parts a and b? Explain.
d. Now assume that you will earn 10% from now through the end of your retirement. You want to make 20 end-of-year deposits into your retirement account that will fund the 30-year stream of $20,000 annual annuity payments. How large do annual deposits have to be?