• A person contributes $\pounds 4,000$ per year into her retirement fund. The fund grows ata compound rate of $5\%.$How long would the money last if she were to cease contributing to thefund when it reaches $\pounds 400,000$ and begins withdrawing an initial amount of$\pounds 20,000$ which then increases every year by $5\%,$ to account for inflation.

 

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1 Calculate the growth rate in decimal form Growth Rate 5 005 2 Use the compound interest formula to ... View the full answer