You plan to retire in 6 years with $X. You plan to withdraw $86,400 per year for 23 years. The expected return is 11.82 percent per year and the first regular withdrawal is expected in 6 years. What is X?
Added by Thomas R.
Step 1
- The amount X you need at t = 6 is the present value (at t = 6) of an annuity-due with 23 payments of 86,400, because the first withdrawal occurs immediately at retirement. Show more…
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