Explore BrainMass

Explore BrainMass

    APR Finance Problem

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Today you begin your retirement. 30 years ago (year 0) you deposited $50,000 into an investment account that, since then, has always paid a 6 APR compounded annually. Starting one year after the year 0 deposit, you deposited $10,000 a year for the next 29 years (in other words, you made your final deposit today). If you plan to make your first withdrawal today, how much can you withdraw each year for the next 20 years, assuming the annual withdrawal size is fixed?

    © BrainMass Inc. brainmass.com December 24, 2021, 5:12 pm ad1c9bdddf

    Solution Preview

    First, the deposit 30 years ago is
    PV = $50,000
    Interest rate = 6%
    Number of periods = 30
    Then by a financial calculator, ...

    Solution Summary

    This is a solution to a finance problem dealing with retirement savings.