You Are Currently 25 Years of Age

question 102

Essay

You are currently 25 years of age.You have developed a lifetime budget that includes $50,000 at age 40 for a college fund for your kids and $25,000 per year for 20 years to supplement your retirement,the first payment on your 60^th birthday and the last payment on your 79^th birthday.You open an investment account on your 25^th birthday that promises to pay 9% interest compounded annually.You want to deposit equal annual amounts into the account every year on your birthday,starting today (your 25^th birthday)and continuing until you are 40 years old (i.e.,the last deposit is made on your 40^th birthday).How much will each deposit have to be if you want to meet your financial goals?

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Definitions:

Financial Reporting

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GAAP

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