Future value of annuity savings

• Let’s assume we want to save $10,000 every year.
• Our initial balance is zero.
• How much would we have in 30 years?
  • For 8% rate?
  • for 4% rate?

Future value of annuity savings

Two ways to tackle this problem

• Write out series of cash flows and compound
• Use npf.fv function
  • npf.fv(rate, n_periods, -pmt, -pv)
• Let’s try both in today’s notebook

The savings/retirement problem

• Suppose we’d like to withdraw $100,000 in each year of a 20-year retirement
• We’ll save for 30 years
• Assume a rate of 5%.