SOLUTION: You want to be able to withdraw $45,000 from your account each year for 25 years after you retire. You expect to retire in 30 years. If your account earns 9% interest, how

Algebra ->  Finance -> SOLUTION: You want to be able to withdraw $45,000 from your account each year for 25 years after you retire. You expect to retire in 30 years. If your account earns 9% interest, how       Log On


   

Question 1135668: You want to be able to withdraw $45,000 from your account each year for 25 years after you retire.
You expect to retire in 30 years.
If your account earns 9% interest, how much will you need to deposit each year until retirement to achieve your retirement goals?
Answer by ikleyn(52884) About Me  (Show Source):
You can put this solution on YOUR website!
.

Your post is not exactly / (precisely) correct.

You didn't say if the account is a simple percentage or compounded percentage;

and if it is compounded, you said nothing about a compounding period.

Also, you said nothing WHEN you withdraw from the account - at the beginning or at the end of each your - it also does matter.

Without having precise condition, the problem can not be solved correctly, as you, probably, understand.


If you want to learn on how to formulate such problems, look into my lessons
    - Ordinary Annuity saving plans and geometric progressions
    - Annuity Due saving plans and geometric progressions
    - Solved problems on Ordinary Annuity saving plans
    - Withdrawing a certain amount of money periodically from a compounded saving account
    - Miscellaneous problems on retirement plans
in this site, especially into the last two lessons of this list.