Don't used Ai solution You have just turned 30 years old, have just received your MBA, and have accepted your firstjob. Now you must decide how much money to put into your retirement plan. The plan worksas follows: Every dollar in the plan ears 9% per year. You cannot make withdrawals until youretire on your 67th birthday. After that point, you can make withdrawals as you see fit. Youdecide that you will plan to live to 100 and work until you turn 67. You estimate that to livecomfortably in retirement, you will need $91,000 per year starting at the end of the first yearof retirement and ending on your 100th birthday. You will contribute the same amount to theplan at the end of every year that you work. The amount that you will need in 37 years is $(round to nearest cent). To fund your retirement, your annual contribution must be $ ___ (round to the nearest cent).

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EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 44P

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You have just turned 30 years old, have just received your MBA, and have accepted your first job. Now you must decide how much money to put into your retirement plan. The plan works as follows: Every dollar in the plan earns 7% per year. You cannot make withdrawals until you retire on your sixty-fifth birthday. After that point, you can make withdrawals as you see fit. You decide that you will plan to live to 100 and work until you turn 65. You estimate that to live comfortably in retirement, you will need $100,000 per year starting at the end of the first year of retirement and ending on your 100th birthday. You will contribute the same amount to the plan at the end of every year that you work. How much do you need to contribute each year to fund your retirement bartley by
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