SOLUTION: A. For all parts of this problem, money is invested in a retirement account with an APR of 8.04%. (This is close to the average annual return rate for a traditional individual ret

Question 1190447: A. For all parts of this problem, money is invested in a retirement account with an APR of 8.04%. (This is close to the average annual return rate for a traditional individual retirement account over the last decade.) You want to be able to withdraw $24,000 per year for 20 years after retirement. Round up to the cent for each answer.
5. How much must you have in the account to start with if compounding and withdrawals are both weekly (with 52 weeks per year)?
Answer by Theo(13342) (Show Source): You can put this solution on YOUR website!
i believe the first problem will use 8.04% per year payment of 24,000 at the beginning of each year for 20 years.
i believe the second problem will take 24,000 and divided it by 52 to get a withdrawal at the beginning of each week and will also take 8.04% per year and divided it by 52 to get interest ratre per week and will also multiply 20 years by 52 to get the total number of weeks.
my analysis is shown below, using the financial calculator at https://arachnoid.com/finance/index.html

first analysis is shown below:

second analysis is shown below:

inputs are everything except present value in both analyses.
output is present value.

in the first analysis, .....
interest rate per year = 8.04
payment at the beginning of each year = 24000
number of years = 20

in the second analysis.
interest rate per week = 8.04/52.
payment at the beginning of each week = 24000/52
number of weeks = 20 * 52

let me know if you have any questions.
theo

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