Posted: February 12th, 2016

Your sister turned 35 today, and she is palnning to save $5000 per year for retirement,

(Please show answers, and key strokes for BA II Plus Professional calculator from Texas Instruments.)

Your sister turned 35 today, and she is palnning to save $5000 per year for retirement, with the first deposit to be made on year from today. She will invest in a mutual fund that will provide a return of 8% per year. She plans to retire 30 years from today, when she turns 65, and she expects to live for 25 years after retirement, to age 90. Under these assumptions, how much can she spend in each year after she retires? Her first withdrawl will be made at the END of her first retirement year.