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You are helping your older cousin plan for a retirement fund. Your cousin plans to retire 20 years from today. Starting at the beginning of
You are helping your older cousin plan for a retirement fund. Your cousin plans to retire 20 years from today. Starting at the beginning of that year, your cousin will withdraw $175,000 annually at the beginning of each year for 25 years (that is 25 total withdrawals). Your cousin has found an investment opportunity paying 8% interest compounded annually. How much money must be in the retirement account on the day your cousin retires (20 years from today) to cover all the planned withdrawals. O $2,238,775.82 $1,842,532.70 $1,868,085.83 $2,017,532.70
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