How much money needs to be in the account by the time

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Reference no: EM131087781

Suppose you plan to retire at age 70, and you want to be able to withdraw an amount of $62,000 per year on each birthday from age 70 to age 100 (a total of 31 withdrawals). If the account which contains your savings earns 5.7% per year simple interest, how much money needs to be in the account by the time you reach your 70th birthday? (Answer to the nearest dollar.)

Hint: This can be solved as a 30-year ordinary annuity plus one withdrawal at age 70, or as a 31-year annuity due.

Reference no: EM131087781

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