Linus would like to start saving for his retirement. Starting April 1, 1950, he will make annual deposits into an account, with the last deposit coming on April 1, 1990. Linus assumes he will get pay raises, and plans to increase his deposits by 4.6 percent each year. If he would like to be able to withdraw 49000 dollars per year forever, with the first withdrawal on April 1, 1993, how much will Linus's first deposit need to be? (Assume an interest rate of 3 percent effective throughout.) Answer= dollars.

Intermediate Algebra
19th Edition
ISBN:9780998625720
Author:Lynn Marecek
Publisher:Lynn Marecek
Chapter2: Solving Linear Equations
Section2.2: Use A Problem Solving Strategy
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Linus would like to start saving for his retirement. Starting April 1, 1950, he will make annual deposits into an account, with the last deposit
coming on April 1, 1990. Linus assumes he will get pay raises, and plans to increase his deposits by 4.6 percent each year. If he would like to be
able to withdraw 49000 dollars per year forever, with the first withdrawal on April 1, 1993, how much will Linus's first deposit need to be? (Assume
an interest rate of 3 percent effective throughout.)
Answer=
dollars.
Transcribed Image Text:Linus would like to start saving for his retirement. Starting April 1, 1950, he will make annual deposits into an account, with the last deposit coming on April 1, 1990. Linus assumes he will get pay raises, and plans to increase his deposits by 4.6 percent each year. If he would like to be able to withdraw 49000 dollars per year forever, with the first withdrawal on April 1, 1993, how much will Linus's first deposit need to be? (Assume an interest rate of 3 percent effective throughout.) Answer= dollars.
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