Suppose you are 40 years old and plan to retire in exactly 20 years.Twenty-one years from now you will need to withdraw $5,000 per year from a superannuation fund to supplement your finances.You expect to live to the age of 85.How much money should you place in the Super fund each year for the next 20 years to reach your retirement goal if you can earn 12% interest per year from the fund?

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The Answer of Suppose you are 40 years old and plan to retire in exactly 20 years.Twenty-one years from now you will need to withdraw $5,000 per year from a superannuation fund to supplement your finances.You expect to live to the age of 85.How much money should you place in the Super fund each year for the next 20 years to reach your retirement goal if you can earn 12% interest per year from the fund?

Suppose You Are 40 Years Old and Plan to Retire