Creating a retirement fund


To supplement your planned retirement in exactly 35 years, you determine that you need to accumulate $300,000 by the end of 35 years from today. You plan to make equal, annual, end-of-year deposits in an account paying 6% annual interest.

Question1: How large should the annual deposits be to create the $300,000 fund by the end of 35 years?

Question2: If you can afford to deposit only $550 per year in the account, how much will you've accumulated by the end of third-fifth year?

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Finance Basics: Creating a retirement fund
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