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Size of the Annual Deposits

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Jay Williams is 35 years old today and is beginning to plan for his retirement. He wants to set aside an equal amount at the end of each month for the next 25 years so that he can retire at age 60. He expects to live to an age of 80 and wants to be able to withdraw $50,000 per year from the account on his sixty-first through eightieth birthday. The account is expected to earn 10% per year for the entire period of time. Determine the size of the annual deposits that he must make and show all computations.

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This provides the steps to calculate the size of the annual deposits

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Jay Williams is 35 years old today and is beginning to plan for his retirement. He wants to set aside an equal amount at the end of ...

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