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Derek plans to retire on his 65th birthday. However, he plans to work part-time until he...

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 he fully retires on the day he turns 70.0, he will begin to make annual withdrawals of $176,065.00 from his retirement account until he turns 87.00. 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 10.00% interest rate.

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6936 We will calculate by reverse calculation to find the annual saving to be done by derek from his 26 birthday 6937 6938 present value at the age of corpus when he started withdrawl annuall 6939 Monthly withc 176,065.00 6940 years 6941 6942 present value at the age of 65 when he stop monthly instalment and only interest ammount added per annum 6943 6944 6945 calculation of pmt for 40 years when present value is 964,630 6946 Rate 6947 yeans 17.00 1,553,546.26PV(10%,17,B6939,,1) 964,630.00 +B6941/1.145 10% 40.00 years $1,981.36 -PMT(10%,40,,B6943, 1) Table yearly deposits 6949 6950 6951 6952 6953 6954 6955 6956 6957 6958 6959 withdrawl interest 198.14 416.09 655.83 919.55 1,209.64 1,528.74 1,879.75 2,265.87 2,690.59 3,157.78 3,671.70 4,237.00 4,858.84 5,542.86 6,295.28 2,179.50 ($1,981.36) 26 27 1,981.36 1,981.36 1,981.36 1,981.36 1,981.36 1,981.36 1,981.36 1,981.36 1,981.36 1,981.36 1,981.36 1,981.36 1,981.36 1,981.36 1,981.36 0 4,576.95 7,214.14 10,115.06 13,306.06 16,816.17 20,677.29 24,924.52 29,596.47 34,735.61 40,388.67 46,607.04 53,447.24 60,971.47 69,248.12 0 0 32 0 34 0 6961 36 37 0 6963 0 39 6965 069,248.12 78,352.43 88,367.17 99,383.39 111,501.22 124,830.85 139,493.43 155,622.27 173,364.00 192,879.90 214,347.39 237,961.6990 5991 5992 5993 6994 5995 6996 5997 5998 6999 65 1,981.36 0.00 0.00 0.00 0.00 0.00 964,630.36 96,463.041,061,093.40 106,109.34 1,167,202.74 116,720.271,283,923.01 128,392.30 1,412,315.31 87,693.67 964,630.36 0 67 70 0 176065 176065 176065 176065 176065 176065 176065 176065 176065 176065 176065 176065 176065 176065 176065 176065 176065 141,231.531,553,546.841,553,546.26 137,748.181,515,230.03 133,916.501,473,081.53 129,701.65 1,426,718.18 125,065.32 1,375,718.50 119,965.35 1,319,618.85 114,355.38 1,257,909.23 108,184.42 1,190,028.66 101,396.37 1,115,360.02 93,929.50 1,033,224.52 942,875.48 843,491.52 734,169.18 613,914.59 481,634.55 336,126.51 176,067.66 2.93 72 75 7001 002 003 004 005 7006 7007 008 009 010 011 012 76 78 79 81 82 83 84 85 86 85,715.95 76,681.05 66,742.65 55,810.42 43,784.96 30,556.96 16,006.15 0.27

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