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Your objective is to have $ 8 , 0 0 0 , 0 0 0 in an account that earns 8 % annual return when
Your objective is to have $ in an account that earns annual return when you retire in years.
a If you make an equal deposit at the end of everyyear to the account for the next years, what is the annual deposit? Assume that your first deposit occurs at the end of next year.
b You retire after years and have $ in the account as planned. You expect to live for another years after retirement. Assume that you leave the $ in the account that continues to earn annual return. You plan to make an equal withdrawal from the account everyyear for the next years. The first withdrawal is made at the end of the first year after your retirement and the account balance will be depleted after you make the withdrawal. How much can you withdraw at the end of each year for the next years?
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