Problem 7-03

A 50-year-old woman decides to put funds into a retirement plan. She can save $1,000 a year and earn 5 percent on this savings. How much will she have accumulated if she retires at age 65? Use Appendix C to answer the question. Round your answer to the nearest dollar. $ _____

At retirement how much can she withdraw each year for 20 years from the accumulated savings if the savings continue to earn 5 percent? Use Appendix D to answer the question. Round your answer to the nearest dollar. $ _____