Retire plan-how much equal payment deposits should you make

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Reference no: EM131863312

You just turned 21 today and you want to retire after your 36th birthday. Starting your 37th birthday, you want to withdraw $40,000 for the next 30 years. First withdrawal is on your 37th birthday, and last withdrawal on your 66th birthday. You want to make equal payment deposits; first deposit will start on your 22th birthday and the last deposit will be on your 36th birthday so that you can withdraw $40,000 every year during your retirement years. How much equal payment deposits should you make? Assume a 15% interest rate for the entire period.

Reference no: EM131863312

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