You plan on retiring in 25 years. In order to increase your retirement income, you open a retirement account today, and make a $20,000 deposit. In addition, you will deposit $5,000 every year for the next 25 years. Your plan is to start making annual withdrawals of $50,000 from the account, after you retire. Assuming the account is earning 7% rate of interest, how many years will it take, after you retire, before the funds in your account are completely exhausted?

(assume annual compounding)

Answer rating: 100% (QA)

Answer I There are two sets of deposits made 1 One time deposit of 20000 2 Deposit of 5000 ev... View the full answer