T-Bond Face Value

$20,000

Coupon Rate

4.50%

Current YTM

3.00%

Remaining Term on T-Bond in years

22

Annual Investment in stock fund

$2,750.00

Annual Return on Stock Fund

6.25%

Jenna's current age

22

Desired retirement age

63

Planned life expectancy ( age in years)

96

PV of treasury bond

$24,781.07

Annual investment in stock fund

$900.00

Number of years Jenna saves money (years)

41

Number of years of withdrawal (years)

33

Return on stock fund (r, %)

6.25%

Step 1:

FV of saving from age 22 - 63

Step 2:

Annual withdrawal amount beginning age 64