Herbert has opened a retirement fund account which pays 7 percent interest and requires $5,000 annual deposits. Herbert will retire in 15 years and expects 10 years of retirement life
What is the maximum annual retirement benefit Herbert can get during his retirement years?
I = 7%, PMT = $5,000, N = 15, PV=0
At the beginning of retirement:
CPT FV = $125,645
Annual retirement benefit: i = 7%, n = 10, PV = $125,645, FV=0
CPT PMT = $17,887.96
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