Annie recently started a new job with the Slim Tings Co. as a senior manager and is just trying to catch up on having money for retirement. Slim Tings Co. offers her a pension plan with an annuity that is guaranteed to earn 12% interest compounded annually. She plans to work for 28 years before retiring and would then like to be able to draw an income of $658,000.00 per annum for 21 years. How much must be deposited per annum into her retirement fund to accomplish this?

Annie recently started a new job with the Slim Tings Co. as a senior manager and is just trying to catch up on having money for retirement. Slim Tings Co. offers her a pension plan with an annuity that is guaranteed to earn 12% interest compounded annually. She plans to work for 28 years before retiring and would then like to be able to draw an income of $658,000.00 per annum for 21 years. How much must be deposited per annum into her retirement fund to accomplish this?

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter14: Planning For Retirement

Section: Chapter Questions

Problem 2FPE

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Nicola Martin also just started working with the NCB as a sales representative and is just trying to catch up on having money for retirement. NCB offers her a pension plan with an annuity that is guaranteed to earn 11% interest compounded Semi-annually. She plans to work for the same 12 years before retiring and would then like to be able to draw an income of $110,000 per annum for 16 years. How much must be deposited per annum into her retirement fund to accomplish this? DO NOT USE EXCEL SHOW ALL WORKING
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