Question: Assume next month you begin saving $ 5 0 0 per month for retirement in an account that earns a return of 6 % compounded

Assume next month you begin saving $

500

per month for retirement in an account that earns a return of

6 %

compounded monthly. You plan to retire in

30

years and expect to live for

20

years after retirement. Upon retirement, you will shift your savings into an account that earns a rate of

3 %

compounded monthly. Calculate how much you can withdraw each year during retirement, assuming you withdraw the same amount annually. Please show all work.

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