Question
Today is December 31, 2019. Mike retired five years ago, on December 31, 2014. Since his retirement, he has been withdrawing $55,000 every year on
Today is December 31, 2019. Mike retired five years ago, on December 31, 2014. Since his retirement, he has been withdrawing $55,000 every year on December 31st. The first withdrawal was made on December 31, 2015 and the last withdrawal was made today (total 5 withdrawals). The balance in his retirement account today, after he withdrew the $55,000, is $900,000. Mike saved for his retirement by contributing a fixed amount in his savings account on December 31st of each year. The first payment was made on December 31, 1980 and the last payment was made on December 31, 2014. He made a total of 35 equal payments. The interest rate on this account has always been 3%. What was the amount that Mike deposited in this account every year?
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