Question: Apply Basic Annuities: John is currently 25 years old. He has $10,000 saved up and wishes to deposit this into a savings account which pays

Apply Basic Annuities:

John is currently 25 years old. He has $10,000 saved up and wishes to deposit this into a savings account which pays him J12 = 6% p.a. He also wishes to deposit $x every month into that account so that when the retires at 55, he can withdraw $2,000 every month end to support his retirement. He expects to live up till 70 years.

How much should he deposit every month into his savings account?

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