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A customer named Freddie is 39 years old and wants to retire at age 65. He plans to put $2,000 into his individual retirement account
A customer named Freddie is 39 years old and wants to retire at age 65. He plans to put $2,000 into his individual retirement account (IRA) at the beginning of every year for the next 25 years. (The last payment will be at the end of his 64th year.) When he reaches age 65, he plans to withdraw the money in equal amounts for the next 20 years. The first withdrawal will be at the beginning of the 65th year. How big will each withdrawal be if his IRA yields 8%
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