What amount must she deposit annually now to be able to make

Reference no: EM13286986

Your friend is celebrating her 32th birthday today and wants to start saving for her anticipated retirement at age 65. She wants to be able to withdraw $90,000 from her savings account on each birthday for 15 years following her retirement; the first withdrawal will be on her 66th birthday. Your friend intends to invest her money in the local credit union, which offers 9 percent interest per year. She wants to make equal annual payments on each birthday into the account established at the credit union for her retirement fund.

Suppose your friend's employer will contribute $1,300 to the account every year as part of the company's profit-sharing plan. In addition, your friend expects a $34,000 distribution from a family trust fund on her 55th birthday, which she will also put into the retirement account. What amount must she deposit annually now to be able to make the desired withdrawals at retirement?

Reference no: EM13286986

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