Question
You plan to work for another 30 years at which point you plan to retire, after which you expect to live for another 30 years.
You plan to work for another 30 years at which point you plan to retire, after which you expect to live for another 30 years. During your retirement, you plan to make annual withdrawals at the beginning of each year where each withdrawal should have the same purchasing power as $100,000 today. You would also like to provide a bequest to your children (paid when you die) that has the same purchasing power as $1 million today. To provide for this, you plan to make annual contributions to an investment account that earns 10% p.a. The first contribution will be made today and the last will be made one year before you retire. Inflation is expected to be 2.8% p.a. What is the amount of your first contribution? Answer to the nearest whole dollar
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