document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=852917>Question 852917</A>: <I><SPAN STYLE=\"word-break: break-all;\"> could somebody help me figure out how to do this problem?\r<BR>\n" );
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document.write( "\"You want to be able to withdraw $40,000 from your account each year for 20 years after you retire. \r<BR>\n" );
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document.write( "You expect to retire in 15 years. \r<BR>\n" );
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document.write( "If your account earns 4% interest, how much will you need to deposit each year until retirement to achieve your retirement goals?\" </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #513791 by </B><A HREF=/tutors/aboutme.mpl?userid=rothauserc><B>rothauserc(4718)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=rothauserc><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=rothauserc><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=513791\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> you expect to withdraw $40,000 for 20 years = $800,000<BR>\n" );
document.write( "we can use the future value calculation for an annuity\r<BR>\n" );
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document.write( "FV = C * [ ((1+i)^n - 1) / i) ]\r<BR>\n" );
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document.write( "C = cash flow per period, FV is the $800,000, i = interest and n is time\r<BR>\n" );
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document.write( "800000 = C * [ ((1+ .04)^15 - 1) / .04 ]<BR>\n" );
document.write( "800000 = C * 20.02<BR>\n" );
document.write( "C = 800000 / 20.02<BR>\n" );
document.write( "C = 39960.03\r<BR>\n" );
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