Mr. X plans to retire at age 57, and he believes that he can live comfortably with an annual pension of $53,000, to be withdrawn at the begninning of each year in his retirement. Suppose his pension account will generate 6.2% of annual interest rate, and suppose Mr. X believes that he will live to 102. In order to have sufficient money for his retirement, what is the minimum amount that Mr. X must have saved up in his pension account at the time of his retirement at age 57?

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SOLUTION To determine the minimum amount that Mr X must have saved up in his pension account at the ... View the full answer