Your client just turned 25 years old today, and she is planning to retire when she turns 60. She will be depositing $10,000 every year into her bank account. The first deposit will be one year from today, and the last deposit will be on her 60th birthday. In addition, she plans to make a one-time deposit into her bank account in the amount of $100,000 on the day when she turns 45. After retirement, your friend would like to withdraw a fixed amount of money every year. The first withdrawal will take place one year after her retirement, and the last one will be on her 90th birthday. The relevant interest rate is 5% per year compounded annually. How much will your friend be able to withdraw every period after retirement? Show your calculation

Answer rating: 100% (QA)

To calculate the fixed amount your friend can withdraw every period after retirement we can use the ... View the full answer