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A friend is celebrating her birthday and wants to start saving for her anticipated retirement. She has the following years to retirement and retirement spending
A friend is celebrating her birthday and wants to start saving for her anticipated retirement. She has the following years to retirement and retirement spending goals. Years until retirement: 30 Amount to withdraw each year: $90,000 Years to withdraw in retirement: 20 Interest rate: 8% Because your friend is planning ahead, the first withdrawal will not take place until one year after she retires. She wants to make equal annual deposits into her account for her retirement fund.
6 | PV now of amount needed at retirement | $ - |
Growing annuity factor for working period (wo r-g) | ||
Dividing by r-g | ||
Amount to save each year | $ |
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