Question
You are currently 50 years old and intend to retire at age 60. To make your retirement easier, you intend to start a retirement account
You are currently 50 years old and intend to retire at age 60. To make your retirement easier, you intend to start a retirement account and to make equal deposits at the beginning of each year for 10 years. You think that the account will earn you 8% per year. After retirement at age 60, you anticipate living 8 more years. At the beginning of each of these years you want to withdraw $27000 from your retirement account. Your account balances will continue to earn 8%. How much you should deposit annually in the account knowing that the balance at end of year 18 (age 68) after the withdrawal should be zero?
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