. You will retire 35 years from now. Once you reach retirement you plan on living...

   

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. You will retire 35 years from now. Once you reach retirement you plan on living 30 years (Anything longer and you will live off your children). You want to have enough money upon reaching retirement age to withdraw $120,000 from the account at the start of each year in retirement, and yet still have $2,000,000 left in the account at the time of your expected death to leave for future BHSU finance students (65 years from now). You accumulate the retirement fund by making equal annual deposits at the end of each year for the next 35 years. You can earn 10% per year on your deposits in your working life. Once you retire you will only be able to earn 7% per year. What annual deposits must you make during your working life each year to fund your retirement? . You will retire 35 years from now. Once you reach retirement you plan on living 30 years (Anything longer and you will live off your children). You want to have enough money upon reaching retirement age to withdraw $120,000 from the account at the start of each year in retirement, and yet still have $2,000,000 left in the account at the time of your expected death to leave for future BHSU finance students (65 years from now). You accumulate the retirement fund by making equal annual deposits at the end of each year for the next 35 years. You can earn 10% per year on your deposits in your working life. Once you retire you will only be able to earn 7% per year. What annual deposits must you make during your working life each year to fund your retirement?

Answer rating: 100% (QA)

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