Question

As part of your retirement plan, you want to set up an annuity in which a regular payment of $25,312 is made at the end of each year. You need to determine how much money must be deposited earning 6.2% compounded yearly in order to make the annuity payment for 20 years.





a.


$2,242.78


c.


$285,671.10




b.


$506,240


d.


$537,626.90