You plan to retire at age 65.You want to withdraw $100,000 from your savings account every year starting on your 65^th birthday.You expect to make your final withdrawal on your 84^th birthday.How much must you have accumulated by your 65^th birthday in order to support your desired withdrawals if you earn 3% on your savings? A) $1,532,379.91 B) $1,587,747.49 C) $1,475,351.31 D) $1,432,379.91 E) $1,090,095.56

Question

Quizplus · Accepted Answer

PV = PMT × 11ea7fdb_fc1b_3bee_a768_11a27dbc6641_TB2902_11 × (1 + i)
PV = 100,000 × 11ea7fdb_fc1b_3bef_a768_d9e63600010b_TB2902_11 × (1.03) = $1,532,379.91
Using a financial calculator:
N = 20, I/Y = 3, PMT = -100,000, FV = 0, cpt PV = $1,487,747.49
1,487,747.49 × 1.09 = $1,532,379.91

You Plan to Retire at Age 65