Question

Musashi expects to live for another 20 years if he retires at age 70, with the same expected percent return on investments in the stock ma

Use the following table to indicate which values you should enter on your financial calculator. For example, if you are using the value of 1 f
use the selection list above N in the table to select that value.
Input V
N
Keystroke
Output
1/Y
Amount saved for retirement by age 70
PV
Using a financial calculator, you can calculate that Musashi can withdraw
assuming a fixed withdrawal each year and $0 remaining at the end of his life.
Step 3: Practice: Future Value of an Annuity
Q Search
PMT FV
?
at the end of each year after retirement at a
D
MOC

Answer 1

Explanation:

To calculate the future value of an annuity, you will need the following inputs on your financial calculator:

PMT: The fixed withdrawal amount you plan to make each year after retirement.

N: The number of years you expect to make withdrawals.

I/Y: The annual interest rate or expected rate of return on investments.

FV: The future value or desired amount remaining at the end of the withdrawal period (usually set to zero in this case, assuming no remaining balance at the end of Musashi's life)