question 16

Abbot is 40 years old today. He plans to deposit a fixed, equal annual amount into his retirement account starting today (at t = 0) and on each birthday until he turns 60 (at t = 20). He plans to withdraw $100,000 per year on each birthday beginning when he is 70 (at t = 30) and ending when he is 89 (at t = 49). The account will earn 7 percent p.a.. What must Abbot's annual deposits be to achieve his retirement income goal? 01) $12,843.91 O2) $12,003.65 3) $16,014.77 ( 4) $14,497.85 5) $16,975.66