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How much can you with draw from that account each year

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Question - You accepted a new job with starting salary of $52,000 per year. The salary is expected to increase 4% each year. Now it is time to make a retirement plan for the next 39 years you expect to work. Your retirement fund has an annual interest rate of 5%, and you plan to deposit 10% of your annual salary into the account.

Required -

a) How much money will be in your retirement account at the end of 39 years?

b) How much can you with draw from that account each year in retirement for 25 years. Assume you will withdraw the same amount each year.

Reference no: EM133118750

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