2.Bill is 30 years old. He plans to retire 35 years from today and have sufficient savings to guarantee retirement income for 20 years. He plans to withdraw $48,000 in the first year of retirement, with subsequent withdrawals increasing by 4% per year. Assume withdrawals will be made at the beginning of each year. Bill estimates that when he is 55 years old he can sell his fishing camp for $200,000 and invest the proceeds at 8% compounded annually. The expectation is that interest rates will be relatively stable at 8% a year for the next 35 years. Thereafter, the interest rate is expected to decline to 6% forever. Bill wants to make equal annual deposits at the end of each of the next 35 years. How much should be deposited each year in order to meetthe stated objectives

Answer rating: 100% (QA)

281982 explanation To find the amount Bill should deposit each year we can use the following formula ... View the full answer