Question
After 30 years of working at your dream job, you are now thinking about retiring. Since you always planned to move somewhere sunny upon retirement,
After 30 years of working at your dream job, you are now thinking about retiring. Since you always planned to move somewhere sunny upon retirement, you diligently saved $300 per month throughout your entire career, placing them into an account that paid 8% interest, compounded quarterly. Now, you intent to use some of these saving to purchase a small beach house for $200,000. And the remainder of your savings is to fund for your retirement years (which are to last 20 years). If interests rates are expected to be 6%, compounded semiannually, how much annual retirement salary will you be able draw so that you do not run out of money?
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