Question
retirement account. You would like to take a total of 26 withdrawals, with your first withdrawal of $150,000 at Year 65 , and your last
retirement account. You would like to take a total of 26 withdrawals, with your first withdrawal of
$150,000
at Year 65 , and your last withdrawal at Yea 90 . In order to account for inflation, your withdrawals in Year 66 through Year 90 will increase by 4.0 percent each year (i.e., a growing annuity; the withdrawal for Year
66=$150,000**1.04=$156,000
, etc.). You currently have
$30,000
in your retirement account and believe that you can earn an effective annual rate of return of 7.84 percent over time. Given this information, determine how much you would have to deposit in your retirement account, each year, at Years 21 - 64 (a total of 44 deposits), in order for you to be able to meet your retirement goals.\ Enter your answer in dollars, rounded to the nearest dollar, with no punctuation. For example, if your answer is
$3,888.23
, enter " 3888 ".
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