Today, you celebrated your 30^th birthday. You just landed a new job at Ford Motor Company. Ford provides you a 401-k plan, and you decide to deposit $250 every month for 15 years. Ford matches your 401-k at 100% (matching funds are deposited annually) and pays interest at 5.4% compounded monthly. At the end of your tenure at Ford, you change the job to Volkswagen (VW), and you decide to roll-over your entire 401-k to VW.

At Volkswagen, you contribute 7% of your salary to the 401-k; deposits are made annually. Your starting salary at Volkswagen is $80,000 and you expect to earn 2.5% pay raise every year. Volkswagen matches your 401-k at 75% (matching funds are deposited annually).

You had a hardship withdrawal of $50,000 at age 52. The money was returned to account at age 58. Volkswagen 401-k account pays interest at 8% compounded quarterly. (Caution not a typo and not like we did in class where it was CM) You retire from VW when you reach 65. On your 65th birthday, you do a trustee to trustee rollover of your money from VW to Charles Schwab. That account pays interest at 8.4% compounded monthly. You leave the account at Schwab for the rest of your life. You withdraw $60,000 from your account at Schwab on your 69th birthday.

Beginning age 70, you start withdrawing $7,000 every month with withdrawals made end of every month. Determine the balance in the account on your 80th birthday.

Beginning age 80, you will start withdrawing an amount every month, so that the balance at age 90 is zero. What is that monthly withdrawal amount?