Question

In order to accumulate $800,000 in your retirement fund after

thirty years, calculate the amount that must be invested at the end
of each year, if the invested funds earn 3.5% compounded
annually.

Answer 1

To accumulate $800,000 in the retirement fund after thirty years with an annual interest of 3.5% compounded annually, you need to calculate the amount that must be invested at the end of each year.

Step-by-step explanation:

To accumulate $800,000 in the retirement fund after thirty years with an annual interest of 3.5% compounded annually, you need to calculate the amount that must be invested at the end of each year.

Here's how to calculate it:

1. Divide the future value ($800,000) by the future value factor for a $1 annuity at a 3.5% interest rate and 30-year period. This can be found using a financial table or a financial calculator.
2. Multiply the result from step 1 by the future value factor to get the annual investment amount.

By following these steps, you can determine the amount that must be invested each year.