Question 470887: I want to retire in 30 years. If I save $7,000 per year until I retire, how much income will I receive every year after I retire for 15 years. Interest rate is 4% per year which applies to the whole time horizon before and after retirement. Assume that all of my savings and invomes are made at the end of each year.
PLEASE HELP
Answer by ankor@dixie-net.com(22740)   (Show Source):
You can put this solution on YOUR website! I want to retire in 30 years. If I save $7,000 per year until I retire, how much
income will I receive every year after I retire for 15 years. Interest rate is
4% per year which applies to the whole time horizon before and after retirement.
Assume that all of my savings and invomes are made at the end of each year.
:
The formula for this is complicated, but using the financial feature on a TI83
:
Deposit $7000 yearly with 4% interest, for 30 yrs: $392,594.56
Payout of 15 yrs while still earning 4%: $19,606.60 per year
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