) 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?
What will be an ideal response?
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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What will be an ideal response?