rned 21 and you are planning for your retirement. You would like to retire at age 65 (44 years from now), at which time you will begin withdrawing funds from your retirement account. You would like to take a total of 26 withdrawals, with your first withdrawal of $150.000 at. Year 65, and your last withdrawal at Year 90 . In order to account for inflation, your withdrawals in Year 66 through Year 90 will increase by 4.0 percent each year (i.e., a growing annuity; the withdrawal for Year 66= $150,000⋅1.04=$156,000, etc.). You currently have $30.000 in your retirement account and believe that you can earn an effective annual rate of return of 7.84 percent over time. Given this information, determine how much you would have to deposit in your retirement account, each year, at Years 21 - 64 (a total of 44 deposits), in order for you to be a
You have just turned 21 and you are planning for your retirement. You would like to retire at age 65 (44 years from now), at which time you will begin withdrawing funds from your retirement account. You would like to take a total of 26 withdrawals, with your first withdrawal of $150.000 at. Year 65, and your last withdrawal at Year 90 . In order to account for inflation, your withdrawals in Year 66 through Year 90 will increase by 4.0 percent each year (i.e., a growing
Step by step
Solved in 3 steps with 2 images
