Teresa Would Like to Retire on December 31, 2020, and Take

question 27

Essay

Teresa would like to retire on December 31, 2020, and take a trip around the world.In order to do this, she feels she must accumulate $200, 000 in her retirement account by that date.She is willing to deposit a certain amount each year into her retirement account, which earns 12% interest compounded annually.Teresa will make the first deposit on December 31, 2011, and the last deposit on December 31, 2020.
Required:
Determine the amount Teresa must deposit into her retirement account each year.Clearly label all work.

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Definitions:

Adequacy Of Consideration

The sufficiency of what is exchanged in a contract to make the agreement enforceable, ensuring each party receives something of value.

Bankruptcy

A legal procedure for dealing with debt problems of individuals and businesses; officially declared inability to pay outstanding debts.

Promissory Estoppel

A legal principle that prevents a promisor from denying a promise when the promisee relies on it to their detriment.

Consideration

A fundamental concept in contract law that refers to something of value (such as money, a promise, or an act) exchanged between parties as part of a contract.