3-43. An annuity fund is to be created to provide $6,000 at the end of each quarter year from ages 65 through 90 beginning at the end of the first quarter after age 65. Quarterly deposits are to be made to an account paying 8% per year compounded quarterly. These deposits will be stopped at age 65. (a) How much should each quarterly deposit be if the person is now 25 years old? (b) How much should the deposits be if the person is now 40 years old?

3-43. An annuity fund is to be created to provide $6,000 at the end of each quarter year from ages 65 through 90 beginning at the end of the first quarter after age 65. Quarterly deposits are to be made to an account paying 8% per year compounded quarterly. These deposits will be stopped at age 65. (a) How much should each quarterly deposit be if the person is now 25 years old? (b) How much should the deposits be if the person is now 40 years old?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

ChapterM: Time Value Of Money Module

Section: Chapter Questions

Problem 10E: Amount of an Annuity John Goodheart wishes to provide for 6 annual withdrawals of 3,000 each...

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