Question
Debbie recently graduated from NC State University with a BS degree in Electrical Engineering. She is gainfully employed by GoPack Computing located in Research Triangle
Debbie recently graduated from NC State University with a BS degree in Electrical Engineering. She is gainfully employed by GoPack Computing located in Research Triangle Park. Debbie is 25 and plans to retire at 65 or 40 years from now. She wants to travel during her retirement and has decided to start saving now. She can save $200 per month for the next ten years then she plans to increase her savings to $500 per month for the remaining 30 years. How much can Debbie withdraw each month during her retirement? Assume she will live for 20 years after retirement and withdraws all of the money in the account. She will earn 12% during the saving period and 6% during retirement. Assume monthly compounding during the savings and retirement periods.
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