Question
Uma turned 25 today, that she plans to retire on her 65 th birthday , and that s he expects to live until her 8
Uma turned 25 today, that she plans to retire on her 65 th birthday , and that s he expects to live until her 8 0 th birthday . On her 65th birthday, she wants $ 90,000 and wants that amount to increase by 2 % every year until h er 80th birthday. In other words, she wants to make a withdrawal from her 65th birthday until her 80 th ( including her 80th birthday ). So far, she has managed to save $ 40,000 (until today ) and that money is earning an interest rate of 7% compounded annually . She wants to put additional equal amount of deposit from h er 26th birthday until her 64th birthday in the same account. Given this , how much must she should deposit every year to meet her retirement goal?
A) $2,381.99
B) $3,233.53
C) $2,171.88
D) $2,548.73
E) $1,823.34
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