Assume that today is January 1, 2022, and that you just turned 25 years old. You plan to retire when you turn 65 years old. Beginning that day, you will take retirement draws of $71,923 at the beginning of each year. You expect to live a total of 18 years once you retire. Your money will continue to earn 8% during your retirement years. How much money will you need in your retirement account as of the date you retire (when you turn 65 years old) in order to cover your retirement draws over the next 18 years?

Assume that today is January 1, 2022, and that you just turned 25 years old. You plan to retire when you turn 65 years old. Beginning that day, you will take retirement draws of $71,923 at the beginning of each year. You expect to live a total of 18 years once you retire. Your money will continue to earn 8% during your retirement years. How much money will you need in your retirement account as of the date you retire (when you turn 65 years old) in order to cover your retirement draws over the next 18 years?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 32P

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