Start saving for retirement

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Reference no: EM131456583

Liz has just paid off all her student loans and she is ready to start saving for retirement. She will make deposits in each of the years T30 through T60. She will deposit $2,500 in T30 and she will increase the size of each deposit by 4% per year (i.e., g = 4%).

She anticipates making withdrawals from the account in each of the years T65 through T82. Her first withdrawal will be $X in T65, and she would like to be able to withdraw 3% more than $X in T66, etc. (i.e., g = 3% for the withdrawals).

Calculate $X.

Set up problem solution only! Do not provide final answer.

Reference no: EM131456583

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