Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

How would I set this up using the PVIF PVIFGA things? Liz has just paid off all her student loans and she is ready to

How would I set this up using the PVIF PVIFGA things?

Liz has just paid off all her student loans and she is ready to start saving for retirement. She will make deposits in each of the years T30 through T60. She will deposit $2,500 in T30 and she will increase the size of each deposit by 4% per year (i.e., g = 4%).

She anticipates making withdrawals from the account in each of the years T65 through T82. Her first withdrawal will be $X in T65, and she would like to be able to withdraw 3% more than $X in T66, etc. (i.e., g = 3% for the withdrawals). r=10%

Calculate $X.

equate cash flow years T64,T29,T81

Thanks

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions