Question
When you retire you would like to have saved enough to draw out cash each year starting on your 65th birthday. Today is your 20th
When you retire you would like to have saved enough to draw out cash each year starting on your 65th birthday. Today is your 20th birthday. The first withdrawal will be $50,000 and each withdrawal will be 15% greater than the previous. You plan your last withdrawal to be on your 85th birthday. The rate is EAR = 10%. How much must you deposit each six months starting today, with the last deposit six months before your 65th birthday, so as to achieve your retirement plan?
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Fundamentals of Corporate Finance
Authors: Stephen A. Ross, Randolph W. Westerfield, Bradford D.Jordan
8th Edition
978-0073530628, 978-0077861629
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