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Mighty Smart is 25 years old today. Smart wants to be prepared for his retirement,...

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Accounting

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Mighty Smart is 25 years old today. Smart wants to be prepared for his retirement, and so is doing his planning early. He has already saved $40,000 toward retirement. Smart plans to save $6,000 per year at the end of each of the next 15 years, $7,000 per year at the end of each of the following 15 years. and $8,000 per year for the following 5 years. Smart plans to retire on his 60 th birthday. On the day he retires, he plans to spend $200,000 of the money he has accumulated to purchase a house. Smart will live 25 years beyond retirement. He wishes to have a contingency fund of $50,000 available (in addition to his home) at the time of his death to pay for funeral and other expenses that may arise in relation to his death. How much money can Smart withdraw at the beginning of each year of retirement and still meet his other goals? Each of the withdrawals will be for an equal amount. Assume a 10 percent nominal interest rate compounded annually throughout the entire problem. how your calculations to earn partial credit. For this question, show your work using the TVM uttons you used on your calculator (PV, F[V, PMT, I, N, CF, CFO, etc.). Do not show me using the rmulas method (FV=PV(1+i)n etc. )

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