MBA Test Question? How many marks would I get if I got right??????!!!!!
1st. part- Dr. Taylor should have saved this amount=$850,103.36.
2nd. part- Dr. Taylor should have saved this amount=$580,544.54.
3rd. part- Dr. Taylor should have saved this amount=$84,473.95.
The grand total of the above three sums comes to=$1,515,121.85
This amount will enable Dr. Taylor to withdraw an annual annuity payment of $118,523.01 every year for 25 years. So, the answer is certainly "Yes"!.
The formulae used to calculate these amounts are in your book!. If you don't know which ones to use, then I would say, you are in trouble!!!.