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Today is Mr Vidals 30th birthday Five years ago, Mr Vidal opened

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Today is Mr. Vidal\'s 30th birthday. Five years ago, Mr.
Vidal opened a brokerage account and invested his entire
bonus of $250,000 in that account. Mr. Vidal added
$260,000 to this account on his 26th birthday, $270,000 on
his 27th birthday, $280,000 on his 28th birthday, and
$295,000 on his 29th birthday. Mr. Vidal\'s goal is to have
$7,000,000 in the account by his 40th birthday. Starting
today, Mr. Vidal plans to contribute a fixed amount to the
account each year on his birthday. He will make 11
contributions, the first one will occur today, and the final
contribution will occur on his 40th birthday. Complicating
things somewhat is the fact that Mr. Vidal plans to
withdraw $150,000 from the account on his 35th birthday
to make a donation to the International Youth Football
Association (IYFA). How large does each of these 11
contributions have to be for Mr. Vidal to reach his goal?
Assume that the account has earned (and will continue to
cam) an effective return of 11 percent a year.
Solution
Investment on 25th birthday = $250000
Investment on 26th birthday = $260000
Investment on 27th birthday = $270000
Investment on 28th birthday = $280000
Investment on 29th birthday = $295000
Let Vidal contribution of fixed amount to the account = X
Goal to have amount in account by his 40th birthday = $

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Today is Mr. Vidal\'s 30th birthday. Five years ago, Mr. Vidal opened a brokerage account and invested his entire bonus of $250,000 in that account. Mr. Vidal added $260,000 to this account on his 26th birthday, $270,000 on his 27th birthday, $280,000 on his 28th birthday, and $295,000 on his 29th birthday. Mr. Vidal \'s goal is to have $7,000,000 in the account by his 40th birthday. Starting today, Mr. Vidal plans to contribute a fixed amount to the account each year on his birthday. He will make 11 contributions, the first one will occur today, and the final contribution will occur on his 40 ...
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