Question

Intro You just turned 23 years old and want to retire when you turn 65. You...

Intro

You just turned 23 years old and want to retire when you turn 65. You expect to live for 25 years after retirement and want to withdraw $80,000 per year in retirement, starting on your 65th birthday. You expect to earn a return of 5% on your investments every year.

Pt 1. What is the present value (as of your 65th birthday) of the withdrawals you expect to make in retirement?

Attempted answer: 1127515.56 (WRONG)

80000* [ 1 - 1.05^-25] / 0.05

Pt 2. How much money should you save each year if you make the first deposit now and the last one one year before you turn 65?

(To the person answering this)

Please include the correct formula to solve Part 1,

The formula and solution to solve Part 2 and an worded explanation on all the steps below your work. I'm so confused on the subject & Thank You !!!!!

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