Question $36(1$ point$)$

You are $40$ years old and want to retire at age $60.$ Each year, starting one year from

now, you will deposit an equal amount into a savings account that pays $7\mathrm{.}75\%$

interest. The last deposit will be on your $60$th birthday. On your $60$th birthday you

will switch the accumulated savings into a bank account that pays $7\mathrm{.}75\%$ interest.

You will withdraw your annual incomelof $$130000$ at the end of that year $($on your

$61$ st birthday$)$ and each subsequent year until your $80$th birthday. After your last

annual withdrawal on your $80$th birthday, you want to have enough funds remaining

to give your children $$850000.$ How much do you have to save, annually, to make

this retirement plan happen? Round your answer to the nearest dollar.

Your Answer:

Answer