Question
You are 40 years old and want to retire at age . Each year, starting one year from now, you will deposit an equal amount
You are 40 years old and want to retire at age . Each year, starting one year from now, you will deposit an equal amount into a savings account that pays6.8 % interest. The last deposit will be on your th birthday. On your th birthday you will switch the accumulated savings into a safer bank account that pays only4.1 % interest. You will withdraw your annual income of $ at the end of that year (on your birthday) and each subsequent year until your th birthday. On that birthday you want to give 600000$ to your children. How much do you have to save each year to make this retirement plan happen?.
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