You are currently age 25 and would like to retire at age 45 and be able to withdraw from yoursavings $75,000 at the end of each year from then until age 85. You plan to save by making equalinvestments at the end of each year for the next 20 years. You believe you will earn 10% per year onyour investments. Note: Present value and future value tables are needed
A) How much money will you need to have saved when you are ready to retire?
B) How much will you need to invest each year to reach your retirement savings goal?

Question

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The Answer of You are currently age 25 and would like to retire at age 45 and be able to withdraw from yoursavings $75,000 at the end of each year from then until age 85. You plan to save by making equalinvestments at the end of each year for the next 20 years. You believe you will earn 10% per year onyour investments. Note: Present value and future value tables are needed

You Are Currently Age 25 and Would Like to Retire