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5. An individual is considering an investment in a retirement fund that earns 14% per year compounded semiannually. He has just celebrated his 40th birthday and he is planning to retire on his 65th. He will make equal semiannual deposits of $2,000 up to and including his 65th birthday. The annual inflation rate is 10% compounded semiannually. What equal annual withdrawals in actual dollars could be made beginning on his 65th birthday, the last withdrawal occurring on his 75th birthday? What is the constant-dollar equal withdrawals over the same 11 years with the constant dollar base at 40th birthday?
5. An individual is considering an investment in a retirement fund that earns 14% per year compounded semiannually. He has just celebrated his 40th birthday and he is planning to retire on his 65th. He will make equal semiannual deposits of $2,000 up to and including his 65th birthday. The annual inflation rate is 10% compounded semiannually. What equal annual withdrawals in actual dollars could be made beginning on his 65th birthday, the last withdrawal occurring on his 75th birthday? What is the constant-dollar equal withdrawals over the same 11 years with the constant dollar base at 40th birthday?
rahulmk2008Lv3
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Hubert KochLv2
11 Nov 2019
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