About the retirement goal

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Reference no: EM131821496

Uma turned 25 today , that she plans to retire on her 65 th birthday, and that she expects to live until h er 80th birthday . On her 65 th birthday, she wants $ 9 0,000 and want that amount to increase by 2 % every year until her 80th birthday. In other words, she wants to make a withdrawal from h er 65 th birthday until her 80th (including her 80th birthday). So far, she has managed to save $ 4 0,000 (until today ) and that money is earning an interest rate of 7% compounded annually. She wants to put additional equal amount of deposit from h er 26th birthday until h er 64 th birthday in the same account. Given this, how much must she should deposit every year to meet her retirement goal?

Reference no: EM131821496

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