John starts to save money for his retirement. Beginning today he will deposit the same...
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John starts to save money for his retirement. Beginning today he will deposit the same fixed amount each year for the next 20 years into a retirement savings account (i.e., he will make 20 equal annual deposits). Starting one year after making his final deposit, he will withdraw $100,000 annually for each of the following 10 years (i.e. he will make 10 withdrawals in all). Assume that the retirement fund earns 6% annually over both the period that he is depositing money and the period he makes withdrawals. In order for John to have sufficient funds in his account to fund his retirement, how much should he deposit annually (rounded to the nearest dollar)? 1) $18,876 2) $19,600 3) $20,008 4) $21,209 5) $21,801
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