Question: Problem 3: Your family is setting up a retirement plan. You will make fixed monthly contributions to a pension fund, until you retire 30 years

Problem 3: Your family is setting up a retirement plan. You

will make fixed monthly contributions to a pension fund, until you retire

Problem 3: Your family is setting up a retirement plan. You will make fixed monthly contributions to a pension fund, until you retire 30 years from now. After retirement, your family is planning to withdraw a fixed amount A' each month for the next 20 years. Assume that the fund earns a fixed 6% return. 1. If you plan to withdraw $2,000 each month, how much would you have to pay into the fund each month before you retire? How much can you withdraw each month after retirement, if you can only afford to contribute $250 each month to the fund now? 2

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