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You have $114000 in a savings account. One year from now and every year thereafter for a total of 39 deposits, you will deposit $7000.
You have $114000 in a savings account. One year from now and every year thereafter for a total of 39 deposits, you will deposit $7000. Your money will eam 6% interest per year (annual compounding), and you wish to make annual withdrawals starting 40 years from now (one year after the last deposit) that grow at a fixed percentage rate. You want to plan for a never-ending sequence of withdrawals to fund your retirement and ensure that your lazy child (and future descendants) will never have to work. If the first withdrawal is to be $50000, how rapidly can the withdrawals grow? The growth rate is % (Report your answer to three decimal places, eg, 1.402%.)
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