Suppose your friends employer will contribute to the account

Suppose your friend\'s employer will contribute to the account each year as part of the company\'s profit sharing plan. In addition, your friend expects a distribution from a family trust several years from now. What amount must she deposit annually now to be able to make the desired withdrawals at retirement?

Employer\'s annual contribution:	$ 1,500
Years until trust fund distribution:	20
Amount of trust fund distribution:	$ 25,000

c) She needs to depsoit the diffential figure from the requirment after 20 years minus the value of the employers annual contribution & trust fund

Future value = 1500 FVIFA(8%,30) + 25,000 FVIFA (8%,10)

=169924 + 53973 = 223897

Balance fund required = 973633 - 223897 = 749735

749735 =Annuity FVIFA (8%,30)

Annuity = 6618

$Suppose your friend\'s employer will contribute to the account each year as part of the company\'s profit sharing plan. In addition, your friend expects a distr$

Suppose your friends employer will contribute to the account

Solution

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