How much can she withdraw from her retirement savings

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Reference no: EM132068546

The Design Team just decided to save $1,500 a month for the next 5 years as a safety net for recessionary periods. The money will be set aside in a savings account which pays 4.5% interest compounded monthly. The first deposit will be made today. What would today's deposit amount have to be if the firm opted for one lump sum deposit today that would yield the same amount of savings as the monthly deposits after 5 years? Answer $80,760.79. Nadine is retiring at age 62 and expects to live to age 85. On the day she retires, she has $348,219 in her retirement savings account. She is somewhat conservative with her money and expects to earn 6% during her retirement years. How much can she withdraw from her retirement savings each month if she plans to spend her last penny on the morning of her death?

Reference no: EM132068546

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