John Adams plans to retire at the age of 62. He wants an annual income of $60,000 per year. John is currently 45 years of age. How much does he have to place at the end of each year into a retirement account earning 15 percent per year in order to have an adequate retirement nest egg at age 62? He believes that he will live to be 87 and plans to earn 12 percent during retirement. He will draw the money at the end of each year. Assume John deposits into his retirement account starting from the end of the year he is 46, and the last deposit is made at the end of the year he is 62. When withdrawing after retirement, he withdraws $60,000 at the end of each year when he is 63, 64,87

$9,890

$7,231

$6,758

$11,077