Question $18$

$3$ pts

You are planning to retire in $40$ years $)=(40.$ After retirement, you need annual withdrawals of $$900$ from your retirement account for the next $20$ years. The first withdrawal will occur one year after retirement $)=(41.$ Your retirement account offers a $5\%$ APR.

A$.(1$ point$)$ How much a lump$-$sum deposit should you make today $)=(0$ to achieve your retirement goal?

B$.(1$ point$)$ Instead of making a lump$-$sum deposit, you will make annual deposits starting next year $)=(1$ until retirement $)=(40.$ How much should you save each year to achieve your retirement goal?

C$.(1$ point$)$ Suppose that you will work part$-$time for five years after retirement. As a result, your retirement plan of making $20$ annual withdrawals can be deferred by five years. That is$,$ the first withdrawal will be made six years after retirement $)=(46,$ instead of one year after retirement $)=(41.$ No additional deposits will be made into your retirement account during the part$-$time years. How much should you save each year to achieve your retirement goal?

Note: Show your calculation steps briefly and clearly.

Note: Attaching Excel spreadsheets or screenshots will NOT be accepted.

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