Warren reed just turned 40. He has decided that he would like to retire when he is 65? He tjinks he will need $1.5M at the age of 65. For the next 15 years he puts $12K per year into the account. At age 55 he will need to withdraw $40K for membership. If his retirement acct earns 11% compounded annually, how much will Warren need to deposit into it each year for the last ten years of his work career to attain the $1.5 M goal?

# Warren reed just turned 40. He has decided that he would like to retire when he is 65? He tjinks he will need $1.5M at the age of 65. For the next 15 years he puts $12K per year into the account. At age 55 he will need to withdraw $40K for membership. If his retirement acct earns 11% compounded annually, how much will Warren need to deposit into it each year for the last ten years of his work career to attain the $1.5 M goal?

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 39P

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Warren reed just turned 40. He has decided that he would like to retire when he is 65? He tjinks he will need $1.5M at the age of 65. For the next 15 years he puts $12K per year into the account. At age 55 he will need to withdraw $40K for membership. If his retirement acct earns 11% compounded annually, how much will Warren need to deposit into it each year for the last ten years of his work career to attain the $1.5 M goal?

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