The first deposit made one year from today

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Reference no: EM132071527

Your sister turned 35 today, and she is planning to save $8,500 per year for retirement, with the first deposit made one year from today and the last deposit made on her 65th birthday. She currently has no retirement savings. She will invest in a mutual fund, which she expects to provide a return of 7% per year throughout her lifetime. She plans to retire 30 years from today, when she turns 65. She will make a total of 25 annual withdrawals—with her first withdrawal made when she is 66 years old and the last withdrawal made when she is 90. After the last withdrawal there will be $500,000 left in the account. Under these assumptions, how much can she spend in each year after she retires?

Reference no: EM132071527

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