# Retirement saving

Deryl wishes to save money to provide for his retirement. Beginning one year from now, he will begin depositing the same fixed amount each year for the next 30 years into a retirement savings account. Starting one year after making his last deposit, he will withdraw $100,000 annually for the following 25 years (i.e., he will make 25 withdrawals in all). Assume that the retirement fund earns 12% annually over the period he is depositing money and the period he makes withdrawals. For Deryl to have sufficient funds in his account to fund his retirement, how much should he deposit annually (rounded to the nearest dollar)?

## Correct answer:

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#### You need to know the following knowledge to solve this word math problem:

**algebra**- geometric progression
**arithmetic**- rounding
- exponentiation
- addition
**basic functions**- exponential function

#### Units of physical quantities:

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