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please right the answer in written terms, not using a calculator or excel :-) Your client just turned 75 years old and plans on retiring
please right the answer in written terms, not using a calculator or excel :-)
Your client just turned 75 years old and plans on retiring in 10 years on her 85th birthday. She is saving money today for her retirement and is establishing a retirement account with your office. She would like to withdraw money from her retirement account on her birthday each year until she dies. She would ideally like to withdraw $50,000 on her 85th birthday, and increase her withdrawals 10 percent a year through her 89th birthday (i.e., she would like to withdraw $73,205 on her 89th birthday). She plans to die on her 90th birthday, at which time she would like to leave $200,000 to her descendants. Your client currently has $100,000. You estimate that the money in the retirement account will earn 8 percent a year over the next 15 years. Your client plans to contribute an equal amount of money each year until her retirement. Her first contribution will come in one year; her tenth and final contribution will come in ten years (on her 85th birthday). How much should she contribute each year in order to meet her objectives? $12,401.59 $12,998.63 $13,243.18 $13,759.44 $14,021.53Step by Step Solution
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