ou want to be able to withdraw $50,000 from your account each year for 20 years after you retire. You expect to retire in 15 years. If your account earns 4% interest, how much will you need to deposit each year until retirement to achieve your retirement goals?

ou want to be able to withdraw $50,000 from your account each year for 20 years after you retire. You expect to retire in 15 years. If your account earns 4% interest, how much will you need to deposit each year until retirement to achieve your retirement goals?

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 34P

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Question

You want to be able to withdraw $50,000 from your account each year for 20 years after you retire.

You expect to retire in 15 years.

If your account earns 4% interest, how much will you need to deposit each year until retirement to achieve your retirement goals?

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