A man plans to retire after 15 years. Money can be invested at 8% compounded quarterly and the overall future inflation rate is estimated to be 6%. Each quarter-end deposit must be made until retirement so that the man can withdraw $80,000 annually in today's dollars for 20 years after retirement? (Assume the first withdrawal occurs at the end of the first year after retirement.)

Answer rating: 100% (QA)

To calculate the quarterly deposit that needs to be made until retirement we need to account for the future value of the withdrawals during the retire... View the full answer