Question
Same idea as before, you have just enrolled in a retirement program. The first of the growing annual payments into the retirement plan will be
Same idea as before, you have just enrolled in a retirement program. The first of the growing annual payments into the retirement plan will be made in one year's time, on your 31st birthday. The last of the payments will occur on your 60th birthday. You anticipate that the return earned on investments in the plan will be 6 percent per year.
Your goal for the plan is, beginning on your 65th birthday, you will make your first annual withdrawals of $40,000, and your withdrawals will grow at 5% per year for 10 years.
What is the required first payment into the account to hit your goal if you grow your payments by 3% per year?
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