Question

Derek plans to retire on his 65th birthday. However, he plans to work part-time until he turns 72.00. 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 72.0 when he fully retires, he will begin to make annual withdrawals of $153,143.00 from his retirement account until he turns 93.00. After this final withdrawal, he wants $1.55 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 5.00% interest rate.

Answer #1

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A) Derek plans to retire on his 65th birthday. However, he plans
to work part-time until he turns 72.00. 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 72.0 when he fully retires, he will begin to make
annual withdrawals of $120,165.00 from his retirement account until
he turns 94.00. He he will make contributions to his retirement
account from his 26th...

Derek plans to retire on his 65th birthday. However, he plans to
work part-time until he turns 72.00. 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 72.0 when he fully retires, he will begin to make
annual withdrawals of $118,640.00 from his retirement account until
he turns 89.00. After this final withdrawal, he wants $1.26 million
remaining in his account. He...

Derek plans to retire on his 65th birthday. However, he plans to
work part-time until he turns 72.00. 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 72.0 when he fully retires, he will begin to make
annual withdrawals of $146,887.00 from his retirement account until
he turns 88.00. After this final withdrawal, he wants $1.41 million
remaining in his account. He...

Derek plans to retire on his 65th birthday. However, he plans to
work part-time until he turns 72.00. 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 72.0 when he fully retires, he will begin to make
annual withdrawals of $146,887.00 from his retirement account until
he turns 88.00. After this final withdrawal, he wants $1.41 million
remaining in his account. He...

Derek plans to retire on his 65th birthday. However, he plans to
work part-time until he turns 72.00. 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 72.0 when he fully retires, he will begin to make
annual withdrawals of $122,438.00 from his retirement account until
he turns 87.00. He will make contributions to his retirement
account from his 26th birthday to...

Derek plans to retire on his 65th birthday. However, he plans to
work part-time until he turns 72.00. 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 72.0 when he fully retires, he will begin to make
annual withdrawals of $170,683.00 from his retirement account until
he turns 92.00. After this final withdrawal, he wants $1.84 million
remaining in his account. He...

Derek plans to retire on his 65th birthday. However, he plans to
work part-time until he turns 72.00. 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 72.0 when he fully retires, he will wants to have
$3,397,041.00 in his retirement account. He he will make
contributions to his retirement account from his 26th birthday to
his 65th birthday. To reach his...

Derek plans to retire
on his 65th birthday. However, he plans to work part-time until he
turns 72.00. 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 72.0 when he fully retires,
he will wants to have $2,823,229.00 in his retirement account. He
he will make contributions to his retirement account from his 26th
birthday to his 65th birthday. To reach his...

Derek plans to retire on his 65th birthday. However, he plans to
work part-time until he turns 73.00. 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 73.0 when he fully retires, he will begin to make
annual withdrawals of $115,102.00 from his retirement account until
he turns 93.00. He he will make contributions to his retirement
account from his 26th birthday...

Derek plans to retire on his 65th birthday. However, he plans to
work part-time until he turns 73.00. 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 73.0 when he fully retires, he will begin to make
annual withdrawals of $113,873.00 from his retirement account until
he turns 93.00. After this final withdrawal, he wants $1.74 million
remaining in his account. He...

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