Planning for retirement in twenty-five years

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Reference no: EM131021675

Daniel Silva is 40 years old today. He is planning for his retirement in twenty-five years when he turns 65.For each of the next 25 years, he will be saving $15,000 in his retirement account; the amounts to be saved at the end of each year. When he retires, he plans on withdrawing equal amounts at the end of each year for ten years, so that there will be no money left in his account after the last withdrawal when he turns 75.Assume that his retirement account earns an interest of 10% each year.

(a) How much money will he have in his retirement account when he turns 65?

(b) How much can he withdraw in each of the ten years during his retirement?

Reference no: EM131021675

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