For the initial condition assume that account runs money

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Reference no: EM132058706

Your retirement plan: You hope to retire at a 62, and according to actuarial tables, you expect to live for 20 more years. You know of an investment option that will yield 4% annually compounded continuously, and you want to withdraw $50,000 per year in retirement, for 20 years. How much money will you need to have in the account at the beginning of retirement so that you can withdraw $50,000/year for 20 years? For the "initial condition" assume that account runs money in 20 years. Show that differential equation you used to solve this problem, along with screen any technology you use to solve the differential equation. Begin your solution with letting R(t) represent the amount of money in the retirement account t years into your retirement. This problem is primarily asking you to discover R(0).

Reference no: EM132058706

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