Derek plans to retire on his 65th birthday. However, he plans to work part-time until he turns 70.00. During these years of part-time work, he will neither make deposits to nor take withdrawals from his retirement account. Exactly one year after the day he turns 70.0 when he fully retires, he will begin to make annual withdrawals of $157,978.00 from his retirement account until he turns 93.00. After this final withdrawal, he wants $1.56 million remaining in his account. He he will make contributions to his retirement account from his 26th birthday to his 65th birthday. To reach his goal, what must the contributions be? Assume a 9.00% interest rate. Submit
Derek plans to retire on his 65th birthday. However, he plans to work part-time until he turns 70.00. During these years of part-time work, he will neither make deposits to nor take withdrawals from his retirement account. Exactly one year after the day he turns 70.0 when he fully retires, he will begin to make annual withdrawals of $157,978.00 from his retirement account until he turns 93.00. After this final withdrawal, he wants $1.56 million remaining in his account. He he will make contributions to his retirement account from his 26th birthday to his 65th birthday. To reach his goal, what must the contributions be? Assume a 9.00% interest rate. Submit
Chapter3: Income Sources
Section: Chapter Questions
Problem 41P
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Transcribed Image Text:Derek plans to retire on his 65th birthday. However, he plans to work part-time until he turns 70.00. During these years
of part-time work, he will neither make deposits to nor take withdrawals from his retirement account. Exactly one year
after the day he turns 70.0 when he fully retires, he will begin to make annual withdrawals of $157,978.00 from his
retirement account until he turns 93.00. After this final withdrawal, he wants $1.56 million remaining in his account. He
he will make contributions to his retirement account from his 26th birthday to his 65th birthday. To reach his goal, what
must the contributions be? Assume a 9.00% interest rate.
Submit
Answer format: Currency: Round to: 2 decimal places.
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