Question
Mr. Savvy is planning for his retirement. Niagara Dominion Bank has offered him a plan that requires him to deposit $8,000 at the beginning of
Mr. Savvy is planning for his retirement. Niagara Dominion Bank has offered him a plan that requires him to deposit $8,000 at the beginning of each of the next 25 years. The retirement plan guarantees a 12% annual compounding rate over the next 25-year time period. When he retires at the end of the 25th year, the interest earned on the savings in his account is guaranteed to increase at15% annually. Mr. Savvy likes to make 30 equal withdrawals at the beginning of each year from the account after he retires. The first withdrawal will be made at the end of the 25th year. How much Mr. Savvy can withdraw each year after he retires? Please draw a nice timeline.
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