Today is January 1, 2022. You plan to retire on January1, 2052. Starting today, you want to
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Today is January 1, 2022. You plan to retire on January1, 2052. Starting today, you want to deposit a fixed amount every year into the All-Smiles Retirement Fund which provides an expected annual yield of 6 percent for the next 30 years. After your retirement, you expect to live for another 30 years. Considering your projected lifestyle, you expect to need $150,000 per year. You want to make your first annual withdrawal from the Fund on the 31st of December 2052. Using your understanding of the yield curve, you project that you will get an annual return of 7 percent on your fund balances, starting January 2052. What must be the amount of your first deposit today?
Related Book For
Principles Of Managerial Finance
ISBN: 978-0136119463
13th Edition
Authors: Lawrence J. Gitman, Chad J. Zutter
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