Maria just turned 55. Maria is planning to retire in 10 years and she currently has RM500, 000 in her persion fund. Based on the longevity pattern of her family, she assumes that she will live 20 years past her retirement rate. During each of these years she desires to withdraw RM100,000 from it.
Assume that the first deposit to her pension fund will be today, followed by nine more annualdeposits and the annual withdrawals from age 65 will occur at the beginning of each year.
The Question:
Calculate how much annual payment that Maria need to deposit until she retired.