SOLUTION: You want to be able to withdraw $30,000 from your account each year for 20 years after you retire. You expect to retire in 15 years. If your account earns 7% interest, how mu

Algebra ->  Finance -> SOLUTION: You want to be able to withdraw $30,000 from your account each year for 20 years after you retire. You expect to retire in 15 years. If your account earns 7% interest, how mu      Log On


   

Question 1204366: You want to be able to withdraw $30,000 from your account each year for 20 years after you retire.
You expect to retire in 15 years.
If your account earns 7% interest, how much will you need to deposit each year until retirement to achieve your retirement goals?
$
Answer by ikleyn(52788) About Me  (Show Source):
You can put this solution on YOUR website!
.

The posts to the problems of this kind come to the forum regularly in incorrect form.

They do not specify  highlight%28highlight%28NEITHER%29%29  WNEN  the deposits are made  (at the beginning or at the end of a compounding period)
highlight%28highlight%28NOR%29%29  WHEN  the withdrawals are made.


My impression is that the problem's composer/composers  highlight%28highlight%28CHRONICALLY%29%29  do not know how to pose such problems correctly.


It is repeated from time to time  (from month to month and from year to year)  despite my regular warnings.


It is just time to learn on how to formulate such problems in a right way.