Question
Mr. Wilks is 30 years old today and wants to set aside an equal amount at the end of ech of the next 30 years
Mr. Wilks is 30 years old today and wants to set aside an equal amount at the end of ech of the next 30 years into a retirement fund earning 10% p.a. so that he can retire at age 60. At retirement, the funds will be transferred to an investment account earning 6% p.a. He expects to live to age 80 and wants to be able to withdraw $375,000 per year from the account on his 61st through 80th birthdays. He also wants to leave $550,000 as an inheritance to his children at age 80.
How much will he need to save in his retirement account per year to achieve these objectives?
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