|Author||Topic: Quantitative Methods question|
|An investor is celebrating his 50th b´day today and wants to start saving for his anticipated retirement at age 65.He wants to be able to withdraw $15,000 from his savings account on each b´day for 20 years following his retirement whith first withdrawal on 66th b´day. He can deposit money in an account that gives 5% interest per year (compounded quarterly). He wants to make equal annual payments on each birthday into the account, first payment on 51st birtdhay and last on 65th birthday. In addition, the investor´s employer will contribute $100 to the account at the end of every month (total of 180 contributions).
what amount must investor deposit personally each year on his birthday to make the desired withdrawals at retirement?
Could someone please tell me how to work this? The answer given is $7,305, but I don´t get that.