Suppose you are 20 years old and plan to retire at exactly 60 years old. you will need to withdraw $5,000 per year from a retirement fund to supplement your social security payments. You expect to live to the age of 85. How much money should you place in the retirement fund each year to reach your retirement goal if you can earn 12% interest per year from the fund?

Suppose you are 20 years old and plan to retire at exactly 60 years old. you will need to withdraw $5,000 per year from a retirement fund to supplement your social security payments. You expect to live to the age of 85. How much money should you place in the retirement fund each year to reach your retirement goal if you can earn 12% interest per year from the fund?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 39P

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