Question: You have just enrolled in a retirement program. The first of the equal annual payments into the retirement plan will be made in one year's

You have just enrolled in a retirement program. The first of the equal annual payments into the retirement plan will be made in one year's time, on your 31st birthday. The last of the payments will occur on your 60th birthday. You anticipate that the return earned on investments in the plan will be 6 percent per year.

Your goal for the plan is, beginning on your 65th birthday, you will make even annual withdrawals of $40,000 per year for 10 years.

What is the required payment into the account to hit your goal?

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