Question

1. Today is Joan's 30th birthday. Assume that she deposits $3,400 today and $3,400 on each of her birthdays until she turns 60 (when she makes the last deposit) into an account earning 6%. She plans to withdraw equal amounts each year from the time she turns 65 until she is 80. Each withdrawal is $______.

please use financial calculator!!!!

Answer 1

Step-1:Future value of investments on his 60th birthday
Future value		=fv(rate,nper,pmt,pv)		Where,
		$ 2,88,325.70		rate	6%
				nper	30
				pmt	$       -3,400.00
				pv	$       -3,400.00
Step-2:Future value of investment 65 years from now
Future value		=fv(rate,nper,pmt,pv)		Where,
		$ 3,85,844.83		rate	6%
				nper	5
				pmt	$                      -
				pv	$ -2,88,325.70
Step-3:Annual withdrawal from 65 to 80 years from now
Annual withdrawal		=pmt(rate,nper,pv,fv)		Where,
		$     39,727.65		rate	6%
				nper	15
				pv	$ -3,85,844.83
				fv	0