[steven0914]

Your friend is celebrating her 35th birthday today and wants to start
Saving for her anticipated retirement at age 65. She wants to be able to
Withdraw $105,000 from her savings account on each birthday for 20
Years following her retirement; the first withdrawal will be on her 66th
Birthday. Your friend intends to invest her money in the local credit
Union, which offers 7% interest per year. She wants to make equal annual
Payments on each birthday into the account established at the credit
Union for her retirement fund.

Requirements:
A If she starts marking these deposits on her 36th birthday and
Continues to make deposits until she is 65 (i.e. the last deposit will be
On her 65th birthday), what amount must she deposit annually to be
Able to make the desired withdrawals as retirement? (6 marks)

B Suppose your friend has decided to make one lump sum payment on
Her 35th birthday to cover her retirement needs. What amount does
She have to deposit? (6 marks)

[tickle]

Sorry but we don't assist with homework questions, but if you figure it out yourself we will gladly look at your answers.

[steven0914]

what I am not sure is the amount to be calculated for the amount collected in his 65th birthday. Should I find the future value for 105000 collectible in the next 65- 85 years as the amount to calculated for the present deposit?