Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

I need this question to be answered with what exactly to plug into the TVM butto

ID: 2753013 • Letter: I

Question

I need this question to be answered with what exactly to plug into the TVM buttons a Texas Instruments BAII plus, so what do I plug into PV?FV?i/y?n?PMT?... please someone help me. I know there is a way to answer this question with just using a Financial calculator and that is what I am looking for. Thank you in advance.

Mr. Moore is 35 years old today and is beginning to plan for his retirement. He wants to set aside an equal amount at the end of each of the next 25 years so that he can retire at age 60. He expects to live to the maximum age of 80 and wants to be able to withdraw $25,000 per year from the account on his 61st through 80th birthdays (20 withdrawals). The account is expected is expected to earn 10 percent per year for the entire period of time. Determine the size of the annual deposits that must be made by Mr. Moore

Explanation / Answer

No of years = 20years

Interest = 10% , PMT = $25,000 Future Value = 0

PVAN = PMT(PVIFA 0.10,20) = $25,000(8.514)

= $212,850 needed on 60th birthday

now , Number of years = 25, I= 10% future Value = $212,850 and Present Value = 0

$212,850 = PMT(FVIFA0.10,25) = PMT(98.347)

PMT = $2,164

Hire Me For All Your Tutoring Needs
Integrity-first tutoring: clear explanations, guidance, and feedback.
Drop an Email at
drjack9650@gmail.com
Chat Now And Get Quote