Answer to Question #147771 in Finance for manish kush

Question

Ms Ananaya wanted to have a retirement corpus of Rs.1.5 Crores. She has 18 years to go
for retirement. But now she wants to retire 3 years earlier. What is the additional amount
that she needs to invest each year if the rate of return is 8%?

Answer 1

this is an annuity

in the first case 18 years before retirement the payment is annual:

$A=\frac{15 000 000*0.08}{(1+0.08)^{18}-1)}=400 531.44$

in the second case, the payment will be 15 years before retirement:

$A=\frac{15 000 000*0.08}{(1+0.08)^{15}-1)}=552 443.17$

 additional amount:

552 443.17-400 531.44=151 911.73