19. (Financial planning, finding pmt) Anuradha Dixit just turned 55. Anuradha is planning to retire in 10

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19. (Financial planning, finding pmt) Anuradha Dixit just turned 55. Anuradha is planning to retire in 10 years, and she currently has $500,000 in her pension fund. Based on the longevity pattern of her family, she assumes that she will live 20 years past her retirement age; during each of these years, she desires to withdraw $100,000 from her pension fund. If the interest rate is 5% annually, how much will Anuradha have to save annually for the next 10 years?

Assume that the first deposit to her pension fund will be today, followed by nine more annual deposits, and that the annual withdrawals from age 65 will occur at the beginning of each year.

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Related Book For  book-img-for-question

Principles Of Finance With Excel

ISBN: 9780190296384

3rd Edition

Authors: Simon Benninga, Tal Mofkadi

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