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Rhea is celebrating her birthday and wants to start saving for anticipated retirement. She has the following years to retirement and retirement spending goals:
Rhea is celebrating her birthday and wants to start saving for anticipated retirement. She has the following years to retirement and retirement spending goals: Years until retirement Amount to withdraw each year Years to withdraw in retirement Interest Rate 28 100000 25 6% Because Rhea is planning, the first withdrawal will not take place until one year after she retires. She wants to make equal annual deposits into her account for her retirement fund. If she starts making these deposits in one year and makes her last deposit on the day she retires, answer following questions? a. What amount must she deposit annually to be able to make the desired withdrawals at retirement? (Show your answer with proper working) b. How much corpus she should have at the time of her retirement to withdraw the desired amount? (Show your answer with proper working) c. If she wants to withdraw 80000 each year, how much corpus she should have at the time of her retirement to withdraw this amount? (Show your answer with proper working)
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