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Case Information: Years until retirement: 30 Amount to withdraw each year: $ 90,000 Years to withdraw in retirement: $ 20 Interest rate: 8% Inflation rate:

Case Information:
Years until retirement: 30
Amount to withdraw each year: $ 90,000
Years to withdraw in retirement: $ 20
Interest rate: 8%
Inflation rate: 2%
Employer's annual contribution: $ 1,500
Years until trust fund distribution: 20
Amount of trust fund distribution: $ 25,000
  1. How much does she need to have in retirement at the end of year 30 in order to receive her retirement payments assuming that these retirement payments continue to increase at 2% per year throughout her retirement?

  2. If she starts making deposit amounts in one year and makes equal deposit amounts each year and makes her last deposit on the day she retires, what amount must she deposit annually to be able to make the desired withdrawals at retirement?

  3. If she starts making deposit amounts in one year and her deposits increase at the inflation rate of 2% each year until she makes her last deposit on the day she retires, what amount must she initially deposit to be able to make the desired withdrawals at retirement?

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