math

you want to be able to withdraw 25,000 from your account each year after your retire. you expect to retire in 15 years.
If your account earns 4% interest, how much will you need to deposit each year until retirement to achieve your retirement goal?

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asked by sue
  1. Major information is missing from this question.
    1. Is this a perpetuity? That is, does the $25,000 come from a fund that keeps
    earning 4% per year in interest?
    2. Is this a life annuity? Then you will need mortality tables, which are not standard
    ( the probability of a 65 year old from Canada to live to 95 is not the same as
    the prob of a 65 year old from Somalia)
    3. No age is given for the start of the 15 year period of deposits.
    etc

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