Question
Warren Reed just turned 40. He has decided that he would like to retire when he is 65. He thinks that he will need $1,500,000
Warren Reed just turned 40. He has decided that he would like to retire when he is 65. He thinks that he will need $1,500,000 in special retirement accounts at age 65 to maintain his current lifestyle. For the next 15 years he can afford to put $12,000 per year into the account. At age 55 he will need to withdraw $40,000 to purchase membership in the local country club. If his retirement account earns 11% compounded annually, how much will Warren need to deposit into it each year for the last ten years of his work career to attain the $1,500,000 goal?
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