Question: You plan to withdraw $ 1 , 0 0 0 every month for your retirement. Since you don't know how long your retirement will last,

You plan to withdraw $

1, 000

every month for your retirement. Since you don't know how long your retirement will last, you are best off modeling this as an indefinite problem. You would like to also have enough for a regular cruise, so you would like the retirement fund to support a $

3000

withdrawal every year starting in the

3

rd year. What do you need to deposit today in order to fund this withdrawal plan? The nominal interest rate is

12 %

compounded monthly. The solution is within $

1000

of which of the following?

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