Mr. X will retire in 10 years and currently has $200,000 in retirement account. He assumes that he will live up to 20 years after
Mr. X will retire in 10 years and currently has $200,000 in retirement account. He assumes that he will live up to 20 years after retirement. During those 20 years, he projects annual expenses of $50,000. If the interest rate is 7%, how much he needs to deposit annually for the next 10 years? Assume the deposits before retirement and withdrawals after retirement all occur at beginning of year.
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To solve this problem we need to approach it in two parts 1 Calculate the present value of the withdrawals Mr X will make after retirement 2 Determine ... View full answer
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Authors: Ray Brooks, Raymond Brooks
1st Edition
0321155173, 9780321155177
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