Question
Steve Weatherspoon, a super salesman contemplating retirement on his fifty-fifth birthday, decides to create a fund on an 10% basis that will enable him to
Steve Weatherspoon, a super salesman contemplating retirement on his fifty-fifth birthday, decides to create a fund on an 10% basis that will enable him to withdraw $21,040 per year on June 30, beginning in 2024 and continuing through 2027. To develop this fund, Steve intends to make equal contributions on June 30 of each of the years 20202023. How much must the balance of the fund equal on June 30, 2023, in order for Steve to satisfy his objective? Balance of the fund equal on June 30, 2023? What are each of Steve's contributions to the funds?
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