Return on your money for the whole period

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You are 25 now. You have got your first job and you want to plan for your retirement. You plan to work until you are 65 and then retire from work and expect to live for another 20 years. You also plan to put some money in a retirement account every year and, after you retire, you plan to withdraw $75,000 every year from your account. When you make your last withdrawal your account balance will be zero. Assume you will be able to earn 8 percent return (interest) on your money for the whole period. a) How much you should put in your account every year to achieve this goal? b) How much should you put every month in order to withdraw $6,250 every month?

Reference no: EM131021614

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