SOLUTION: You want to be able to withdraw $40,000 from your account each year for 30 years after you retire. You expect to retire in 25 years. If your account earns 6% interest, how much wil
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-> SOLUTION: You want to be able to withdraw $40,000 from your account each year for 30 years after you retire. You expect to retire in 25 years. If your account earns 6% interest, how much wil
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Question 1181793: You want to be able to withdraw $40,000 from your account each year for 30 years after you retire. You expect to retire in 25 years. If your account earns 6% interest, how much will you need to deposit each year until retirement to achieve your retirement goals? Answer by Theo(13342) (Show Source):
You can put this solution on YOUR website! my analysis shows that you will need to have 583,628.84 in the account at the beginning of the retirement period.
this will allow you to withdraw 40,000 at the beginning of each year for the next 30 years.
in order to do that, you will need to invest 15,865.69 at the end of each year for the next 25 years.
i used the financial calculator at for the financial analyisis.
i used excel to show the year by year transactions.
the results are shown below.
in the first analysis using the financial calculator, inputs are everything except present value.
output is present value.
in the second analysis using the financial calcjulator, inputs are everything except payment amount.
output is payment amount.
the present value from the first analysis becomes the future value for the second analysis.
