Question 1195634: You want to be able to withdraw $40,000 from your account each year for 15 years after you retire.
You expect to retire in 20 years.
If your account earns 10% interest, how much will you need to deposit each year until retirement to achieve your retirement goals?
$
Round your answer to the nearest cent.
Found 2 solutions by Boreal, MathTherapy:
Answer by Boreal(15235)   (Show Source):
You can put this solution on YOUR website! The future value is $600,000
FV=m(1.1^20-1/(0.10); multiply through by 0.10
60000=5.727*m, round at the end, dividing both sides by 5.727
$10,475.77 is the amount of the annual deposit.
Answer by MathTherapy(10551)  (Show Source):
You can put this solution on YOUR website!
You want to be able to withdraw $40,000 from your account each year for 15 years after you retire.
You expect to retire in 20 years.
If your account earns 10% interest, how much will you need to deposit each year until retirement to achieve your retirement goals?
$
Round your answer to the nearest cent.
If the annual withdrawals after retirement are to be made at the BEGINNING of the year, then at the START of
retirement, you'll need $334,667.50.
To accumulate $334,667.50 in 20 years' time, you'll need to deposit $5,843.17 at the end of each year, starting NOW.
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