Deposit in the retirement account

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Today, Mr. Guardiola decides to save for his retirement. He is planning to contribute a fixed amount every year in a retirement account starting one year from today for 40 years when he wants to retire. Mr. Guardiola is planning to withdraw $150,000 at the end of each year for 30 years after he retires (40 years from today). If the retirement account pays 12% interest over the periods that he makes contribution and he makes withdrawals, how much Mr. Guardiola should deposit in the retirement account each year for the next 40 years?

Reference no: EM131980695

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