Equal annual saving that will compound to the required amount. Introduction: Annuity : It is an agreement under which a person pays the lump sum payment or the number of small transactions and in return he receives the amount at later date or upon annuitization. The purpose of the annuity is to not the break the flow of income after retirement.

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Chapter 5, Problem 40P

Summary Introduction

To calculate: Equal annual saving that will compound to the required amount.

Introduction:

Annuity:

It is an agreement under which a person pays the lump sum payment or the number of small transactions and in return he receives the amount at later date or upon annuitization. The purpose of the annuity is to not the break the flow of income after retirement.

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