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    Retirement Investment Planning

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    Dr. John Doe is planning for his golden years. He will retire in 20 years, at which time he plans to begin withdrawing $50,000 annually to pay for his living expenses during retirement. He is expected to live for 30 years following her retirement. His financial advisor thinks he can earn 7% annually before his retirement and 10% after his retirement. How much does he need to invest at the end of each quarter to prepare for his financial needs after his retirement?

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    Solution Preview

    Let he deposits R per quarter to meet his objectives.

    First we calculate his accumulations at the end of 20 years.

    Number of deposits=n1=20*4=80
    Rate ...

    Solution Summary

    Solution depicts the steps to calculate the amount of investment needed at the end of each quarter so that investor's financial needs can be met after his retirement.