USING FINANCIAL CALCULATOR FUNCTIONS Today is your 25^th birthday (t=0). You wish to retire when you turn 55 (t=30). You currently have $5,000 in a retirement account earning 4% p.a. In order to save for retirement, you plan on depositing $7,500 into this account every year starting next year (t=1) until your retirement date (last deposit at t=30). When you retire, you plan on withdrawing an equal amount each year starting five years after you retire (first withdrawal at t=35) until you turn 75 (last withdrawal at t=50). You also plan on giving $50,000 to your grandchildren when you turn 75 (t=50). How much can you afford to withdraw each year?

Answer rating: 100% (QA)

To solve this problem using financial calculator functions we can use the annuity and future value f... View the full answer