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Question 2. John hopes to pay for the living expenses during his retirement by withdrawing the same amount yearly from his 401k. The costs will
Question 2. John hopes to pay for the living expenses during his retirement by withdrawing the same amount yearly from his 401k. The costs will be $50,000 per year for food, health care, rent, clothing, travel, and charity, and John plans to live for 25 years after retirement. 1. Please draw the cash flow diagram to illustrate John's plan of using his 401k (5 points). 2. If this 401k can be invested in an account earning 4% annually, what will its initial amount be (5 points)
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