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Please can help me how can solve this question because I failed to solve.
Suppose you wish to retire fourty years from to day. You determine that you need $50000 per year once you retire, with the first retirement funds withdrawn one year from the day you retire. You estimate that you will earn 6% per year on your retirement funds and that you will need funds up to and including your 25th birthday after retirement
a) how much must you deposit in an account today so that you have enough funds for retirement
b) How much must you deposit each year in an account starting one year from today, so that you have enough funds for retirement
I have a strong hunch this is not a ACCA connected question. One question I have is whether the 6 per cent return continues after retirement?