You wish to retire in 20 years at which time you want to

Question

You wish to retire in 20 years, at which time you want to have accumulated enough money to receive an annual annuity of $32,000 for 25 years after retirement. During the period before retirement you can earn 8 percent annually, while after retirement you can earn 10 percent on your money.

 

What annual contributions to the retirement fund will allow you to receive the $32,000 annuity? UseAppendix C and Appendix D for an approximate answer, but calculate your final answer using the formula  and  financial calculator methods. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)