Estimate the money in the retirement account

Case Scenario:

Your client just turned 75 years old and plans on retiring in exactly 10 years (on her 85th birthday). She is saving money today for her retirement and is establishing a retirement account with your office. She would like to withdraw money from her retirement account on her birthday each year until her death. She would ideally like to withdraw \$50,000 on her 85th birthday and increase her withdrawals by 10% a year through her 89th birthday (she would like to withdraw \$73,205 on her 89th birthday). She is planning anticipating that she will die on her 90th birthday, at which time she would like to leave \$200,000 to her children. Your client currently has \$100,000. You estimate that the money in the retirement account will earn 8% a year over the next 15 years.

Your client plans to contribute an equal amount of money each year until her retirement. Her first contribution will come in exactly 1 year; her 10th and final contribution will come in 10 years (on her 85th birthday). How much should she contribute each year to meet her objectives?

a) 12,998.63

b) 13,243.18

c) 13,759.44

d) 14,021.53

e) 11,943.34

f) 11,532,65

g) 11,004.59

h) 10,187.45

i) 11,875.34

j) 12,401.59

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