How much will warren need to deposit

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Reference no: EM131199698

Warren Reed just turned 40. He has decided that he would like to retire when he is 65. He thinks that he will need $2,000,000 in special retirement accounts at age 65 to maintain his current lifestyle. For the next 15 years he can afford to put $10,000 per year into the account. At age 55 he will need to withdraw $50,000 to purchase membership in the local country club.

If his retirement account earns 10% compounded annually, how much will Warren need to deposit into it each year for the last ten years of his work career to attain the $2,000,000 goal?

Reference no: EM131199698

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