On your 30th birthday you deposit $10k in a retirement account paying 2% annually. You increase the deposits by $1000 per year each year. You make your final deposit on your 65th birthday. That same day, you begin your withdrawals, such that you withdraw $W on your 65th birthday, increasing your withdrawals by 4% each year until your final withdrawal on your 85th birthday. At that point your savings have been fully depleted. Find W. Within $100 of :
On your 30th birthday you deposit $10k in a retirement account paying 2% annually. You increase the deposits by $1000 per year each year. You make your final deposit on your 65th birthday. That same day, you begin your withdrawals, such that you withdraw $W on your 65th birthday, increasing your withdrawals by 4% each year until your final withdrawal on your 85th birthday. At that point your savings have been fully depleted. Find W. Within $100 of :
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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a. 51, 394
b. 51, 594
c. 51, 794
d. 51, 994
e. None of the above
Transcribed Image Text:On your 30th birthday you deposit $10k in a retirement account paying 2% annually.
You increase the deposits by $1000 per year each year. You make your final deposit
on your birthday. That ame day, you begin your withdrawals, such that you
withdraw $W on your 65th birthday, increasing your withdrawals by 4% each year
until your final withdrawal on your 85th birthday. At that point your savings have
been fully depleted. Find W. Within $100 of :
65th
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