3 4 When you retire 40 years from now you plan to make 10 annual withdrawals from your savings account at the end of each year, until the 50th year. You will need Amount A each year for 2 years, then...

Extracted text: 3 4 When you retire 40 years from now you plan to make 10 annual withdrawals from your savings account at the end of each year, until the 50th year. You will need Amount A each year for 2 years, then Amount B each year for 3 years, Amount C each year for 4 years, then a final withdrawal of Amount 5 in the final year of 6 retirement. 7 You want to start saving for retirement now and plan to make end of year annual payments for 20 years into an account that yields 8 percent compounded annually. 8 After these deposits you plan to leave the money in the savings account until retirement earning the same interest. 10 Answer questions (a) to (c) below. 11 12 13 14 withdrawal Amount A 134,737 15 withdrawal Amount B 2$ 142,173 16 withdrawal Amount C $ 167,611 17 withdrawal Amount D 191,236 18 19 Interest rate 8%


Extracted text: 40 41 42 43 44 45 46 47 48 What is the value of these withdrawals at the end of year 49 (a) 40? 50 What is the value of these withdrawals at the end of year 51 (b) 20? 52 53 54 What should these 20 annual payments be in order to satisfy 55 (c) your retirement needs?