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You plan to retire 40 years from now. You expect that you will live 30...

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Accounting

You plan to retire 40 years from now. You expect that you will live 30 years after retiring.
You want to have enough money upon reaching retirement age to withdraw $150,000 from
the account at the beginning of each year you expect to live, and yet still have $2,00,000 left
in the account at the time of your expected death (70 years from now). You plan to
accumulate the retirement fund by making equal annual deposits at the end of each year for
the next 40 years. You expect that you will be able to earn 10% per year on your deposits.
However, you only expect to earn 7% per year on your investment after you retire since you
will choose to place the money in less risky investments. What equal annual deposits must
you make each year to reach your retirement goal?

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