You want to be able to withdraw $40,000.00 from your account each year for 15 years after you retire. You expect to retire in 20 years. If your account earns 5% interest compounded annually, how much will you need to deposit each year until retirement to achieve your retirement goal? You will need to deposit_$_____ each year.
You want to be able to withdraw $40,000.00 from your account each year for 15 years after you retire. You expect to retire in 20 years. If your account earns 5% interest compounded annually, how much will you need to deposit each year until retirement to achieve your retirement goal? You will need to deposit_$_____ each year.
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 34P
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You want to be able to withdraw $40,000.00 from your account each year for 15 years after you retire.
You expect to retire in 20 years.
If your account earns 5% interest compounded annually, how much will you need to deposit each year until retirement to achieve your retirement goal?
You will need to deposit_$_____ each year.
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