Question
You have just turned 22 received your degree and accepted your first job. You must decide how much to put in your retirement plan. The
You have just turned 22 received your degree and accepted your first job. You must decide how much to put in your retirement plan. The plan works as follows. Every dollar in the plan earns 6.5 percent per year. You may not make withdrawals until you retire at 65. After that you can withdrawal money as needed. You believe you will live to 100 and work until 65, and believe you need 95000 per year to be comfortable starting at the end of the first year of retirement and will end on your 100th birthday at the end of the year. You contribute the same amount to the plan at the end of every year you work. How much will you need to contribute each year to fund your retirement
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