Mary just turned 31 years old today and she is saving for her retirement. This is her plan. She will make annual deposits into an account with the first deposit today. She will make these deposits up to (and including) her 65th birthday, when she plans to retire. Starting on her 66th birthday, she wants to be able to withdraw $50,000 per year for 20 years to fund her retirement. How large must the annual deposit be in order for her to meet her goals? Assume i^((1))=10%.
Mary just turned 31 years old today and she is saving for her retirement. This is her plan. She will make annual deposits into an account with the first deposit today. She will make these deposits up to (and including) her 65th birthday, when she plans to retire. Starting on her 66th birthday, she wants to be able to withdraw $50,000 per year for 20 years to fund her retirement. How large must the annual deposit be in order for her to meet her goals? Assume i^((1))=10%.
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 39P
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Mary just turned 31 years old today and she is saving for her retirement. This is her plan.
She will make annual deposits into an account with the first deposit today. She will make these deposits up to (and including) her 65th birthday, when she plans to retire. Starting on her 66th birthday, she wants to be able to withdraw $50,000 per year for 20 years to fund her retirement.
How large must the annual deposit be in order for her to meet her goals? Assume i^((1))=10%.
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