document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1195623>Question 1195623</A>: <I><SPAN STYLE=\"word-break: break-all;\"> You want to be able to withdraw $25,000 from your account each year for 15 years after you retire.\r<BR>\n" );
document.write( "\n" );
document.write( "You expect to retire in 20 years.\r<BR>\n" );
document.write( "\n" );
document.write( "If your account earns 8% interest, how much will you need to deposit each year until retirement to achieve your retirement goals?\r<BR>\n" );
document.write( "\n" );
document.write( "$\r<BR>\n" );
document.write( "\n" );
document.write( "Round your answer to the nearest cent. </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #828395 by </B><A HREF=/tutors/aboutme.mpl?userid=Boreal><B>Boreal(15235)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Boreal><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=Boreal><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=828395\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> P = PMT * [1  -  [ (1 / 1+r)^n] / r]; it is annual, so r doesn't have to be divided by anything<BR>\n" );
document.write( "=25000[1-(1/1.08^15}/0.08]<BR>\n" );
document.write( "=$213,986.97 needed.<BR>\n" );
document.write( "round at end,<BR>\n" );
document.write( "On calculator, do 1.08^15, take the reciprocal, subtract from 1 and divide by 0.08. Then multiply by $25000\r<BR>\n" );
document.write( "\n" );
document.write( "Now that needs to be equal to m(1+.08)^20-1/0.08<BR>\n" );
document.write( "multiply through by 0.08 so that $17118.96=m(3.6610)<BR>\n" );
document.write( "m=$4676.16, the annual payment </SPAN>\n" );
document.write( "</TD></TR></TABLE>\n" );