Hypothetically, you are currently 55 years old and intend to retire at age 60. To make...

Hypothetically, you are currently 55 years old and intend to retire at age 60. To make your retirement easier, you intend to start a retirement account. At the beginning of each years 1, 2, 3, 4 (that is, starting today and at the beginning of each of the next four years), you intend to make a deposit into the retirement account. You assume that the account will earn 8% per year. After retirement at age 60, you anticipate living 8 more years. At the beginning of each of these years, you want to withdraw $30,000 from your retirement account. Your account balances will continue to earn 8% annually

As a challenging problem faced by the retirement plan, one primary question is: How much should you deposit annually in the account?

Solver Based Approach: The exhibit the cash flow for the retirement plan, please create a Retirement Plan Table. In the table, for each year, please track the following major financial components:

1) "Account balance, beginning of year"

2) "Deposit/Withdraw at beginning of year"

3) "Interest earned during year"

4) "Total in account, end year

Expert Solution

jeff jeffy answered 1 year ago

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