Finance
You are female, 30 years old and planning to retire at age 65. In order to save for your retirement, you believe that you will be able to invest $300 of each month in an account that earns an average of 10% interest compounded semi-annually. As females have an expected longevity of 75 years, you believe you will live for ten years past your retirement age and will require a sum to live on, at the beginning of each year. The annual amount you require in your retirement years will grow at the expected annual inflation rate of 5% per annum. You also plan to bequeath, upon your death at 75 years of age, $10,000 to your old University. Given these plans, what is the amount you should withdraw in the first year of retirement?
