When you retire you would like to have saved enough to draw out cash each year starting on your 65th birthday. Today is your 20th birthday. The first withdrawal will be $50,000 and each withdrawal will be 15% greater than the previous. You plan your last withdrawal to be on your 85th birthday. The rate is EAR = 10%. How much must you deposit each six months starting today, with the last deposit six months before your 65th birthday, so as to achieve your retirement plan?

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To determine the amount you must deposit each six months starting from your 20th birthday to achieve ... View the full answer