Question: You will be saving for retirement by making equal annual contributions over the next 40 years and use your retirement savings to make equal withdrawals

You will be saving for retirement by making equal annual contributions over the next 40 years and use your retirement savings to make equal withdrawals for 30 years after retirement. Assume you make your first withdrawal exactly 1 year after your last deposit. At t=15 you received a one-time bonus of $30,000 that you add to your retirement account in addition to your regular contributions. Assume you still plan to make 30 equal withdrawals. By how much your annual retirement withdrawals have been increased because of this extra contribution? Assume the annual interest rate (with annual compounding) is 8%.

Question 2 options:

$8,453.27

$18,249.97

$2,664.82

Cannot be determined from the available information

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