You anticipate that you will need 2500000 when you retire


You anticipate that you will need $2,500,000 when you retire 40 years from now. You just joined ExxonMobil and your first annual salary is $200,000 to be received one year from today. You also received one time signing bonus of $50,000 today. You decided that you will put all you signing bonus into your account plus you will contribute $X every year starting next year for the next 39 years. In other words, after your initial deposit of $50,000 today, your first annual payment will be made on year 1 and last payment will be on year 39. How much is $X if you want to have $2,500,000 in Year 40. Assume that interest rate is 12%, compounded annual during this duration.

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Financial Management: You anticipate that you will need 2500000 when you retire
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