You have saved $325,000 for retirement in your bank account. To further improve your retirement savings, you will open a money market account on your 50th birthday. The account earns 4.23% PYCY. You propose to place some additional money in the account starting with your 55th birthday and ending on you 64th birthday. You believe you can increase the amount saved every year by 3% to beat inflation. Starting on your 65th birthday you will withdraw $55,000. Each year you will increase your withdrawal by 4% to counter inflation. Your last payment will be on you 80th birthday.

E. If you can ONLY get 4.23% interest and ONLY deposit $15,000 on your 55th Birthday AND you still want to draw out $55,000 on your 65th Birthday.

What rate of increase can you use on the withdrawals?

F. You will only get 4.23% interest and can only deposit $15,000 on birthday 55. You still want to draw out $55,000 on birthday 65 and increase by 4%.

At what rate will you have to increase your deposits?

G. You can only deposit $15,000 on your 55th birthday. You still get the 4.23% rate and deposit $15000 on your 55th birthday.