Financial planners and engineering economists unanimously


Financial planners (and engineering economists) unanimously encourage people to seek out the highest rate of return possible within their personal level of risk tolerance. To illustrate this point, they frequently produce a table similar to the one below. Fill in the blank cells in this table assuming that your goal is to have $550,000on your 65th birthday and that deposits start on your 26th birthday and continue annually in the same amount on each birthday up to and including your 65th birthday.

Interest rate earned

Amount of Required Annual Deposit.... find this at each interest rate.

4%/year $

5%/year $

6%/year $

7%/year $

8%/year $

9%/year $

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Financial Management: Financial planners and engineering economists unanimously
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