v pic: . A Basic Retirement Problem Example: An investor plans to retire 35 years from today and have sufficient savings to guarantee $48,000 each year for 20 years. Assume retirement withdrawals will be made at the beginning of each of the 20 years. The investor estimates that at the time of retirement, he can sell his business for $200,000. The expectation is that interest rates (or investment return) will be relatively stable at 8% per year for the next 35 years. Thereafter, the interest/return rate is expected to decline to 6% per year forever. The investor wants to make equal annual deposits at the end of each of the next 35 years. How much should be deposited each year in order to meet the stated objective? 2