Marcia Jones is planning for her golden years. She will retire in 20 years, at which time she plans to begin withdrawing $60,000 annually.
She is expected to live for 20 years following her retirement. Her financial advisor thinks she can earn 9% annually.
How much does she need to invest at the end of each year before she retires, to prepare for her financial needs after her retirement?
Sara Smith has invested $100,000 in an account at her local bank. The bank will pay her a constant amount each year for six years, starting one year from today, and the account's balance will be 0 at the end of the sixth year.