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Anne Thom is 25 years old and wants to retire at the age of 50 . In order to be able to retire, Anne figures
Anne Thom is 25 years old and wants to retire at the age of 50 . In order to be able to retire, Anne figures that she needs to have a sufficient amount in her savings account at the retirement date to enable her to withdraw $60,000 at the end of each year for the following 30 years. Anne has just inherited $150,000, which she intends to deposit today to start her retirement fund. Additionally, she will make a deposit at the end of each year for the next 25 years until she reaches 50. How much should each annual deposit be? (Assume that Anne's long-term interest rate is 6\%.)
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