Your sister turned 30 today, and she is planning to save $12,000 per year for retirement,...

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Your sister turned 30 today, and she is planning to save $12,000per year for retirement, with the first deposit to be made one yearfrom today. She will invest in a mutual fund that's expected toprovide a return of 7.5% per year. She plans to retire 35 yearsfrom today, when she turns 65, and she expects to live for 25 yearsafter retirement, to age 90. Under these assumptions, how much canshe spend each year after she retires? Her first withdrawal will bemade at the end of her first retirement year.

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Amount saved per year 12000 No of years saved 35 yearsAnnual rate of return on mutual fund 75First we need to find the amount accumulated at retirement bysaving 12000 per year for See Answer

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Your sister turned 30 today, and she is planning to save $12,000per year for retirement, with the first deposit to be made one yearfrom today. She will invest in a mutual fund that's expected toprovide a return of 7.5% per year. She plans to retire 35 yearsfrom today, when she turns 65, and she expects to live for 25 yearsafter retirement, to age 90. Under these assumptions, how much canshe spend each year after she retires? Her first withdrawal will bemade at the end of her first retirement year.