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Homework answers / question archive / Lisa Simpson wants to have ?$2,000,000 in 60 years by making equal annual? end-of-the-year deposits into a? tax-deferred account paying 9
Lisa Simpson wants to have ?$2,000,000 in 60 years by making equal annual? end-of-the-year deposits into a? tax-deferred account paying 9.25 percent annually. What must? Lisa's annual deposit? be?
The amount of? Lisa's annual deposit must be ?$?
We can calculate the annual deposits by using the following formula in excel:-
=pmt(rate,nper,pv,-fv)
Here,
Pmt = Annual deposits
Rate = 9.25%
Nper = 60 periods
PV = $0
FV = $$2,000,000
Substituting the values in formula:
= pmt(9.25%,60,0,-2000000)
= $920.54
