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(Solving for PMT of ordinary annuity) you want to have $50,000 by saving at the end...

(Solving for PMT of ordinary annuity) you want to have $50,000 by saving at the end of each of the next 10 years. If the opportunity cost of capital (interest rate) is 12% per year, compounded annually, how much must you save annually.
Please show all work!

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Expert Solution

Amount to be saved every year is $2,849.21 as shown in the detailed working in Excel, screen shot of which is appended below:

Hence the amount to be saved annually is $2,849.21

jeff jeffy answered 1 year ago
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