... In retirement, it is a good thing to not run out of money before you run out of time... o While deriving a solution to this question assume a 5% annual continuous interest rate and all deposits as well as withdrawals are made in a continuous fashion. Upon landing your first job after college graduation a goal is set ... In 40 years you will retire with the ability to live on $10,000.00 monthly withdrawals over a 20 year time period. Moreover, while taking into account possible inflation in retirement you will withdrawal monies at a rate proportional to the size of the first year of withdrawals. Your withdrawals will increase by 2% each year; " =0.02W, Hint: ... two time periods > two differential equations ... Answer the following: a) According to this plan how much money will you need to retire? b) How much money will you need to save annually to make this plan work? c) If after 20 years of retirement and this plan works, what is the amount of your monthly withdrawals over the last year? d) What is the total amount of money you paid into the plan and what is the total amount of money you take out? In the end you have zero dollars ... ... In retirement, it is a good thing to not run out of money before you run out of time... o While deriving a solution to this question assume a 5% annual continuous interest rate and all deposits as well as withdrawals are made in a continuous fashion. Upon landing your first job after college graduation a goal is set ... In 40 years you will retire with the ability to live on $10,000.00 monthly withdrawals over a 20 year time period. Moreover, while taking into account possible inflation in retirement you will withdrawal monies at a rate proportional to the size of the first year of withdrawals. Your withdrawals will increase by 2% each year; " =0.02W, Hint: ... two time periods > two differential equations ... Answer the following: a) According to this plan how much money will you need to retire? b) How much money will you need to save annually to make this plan work? c) If after 20 years of retirement and this plan works, what is the amount of your monthly withdrawals over the last year? d) What is the total amount of money you paid into the plan and what is the total amount of money you take out? In the end you have zero dollars