Cheryl and Gunther wish to place into a retirement fund an equal amount each year for 20 consecutive years to accumulate just enough to withdraw $24,000 per year starting exactly one year after the last deposit is made. The fund has a reliable return of 8% per year.
Determine the annual deposit for two withdrawal plans:
(a) forever (years 21 to infinity);
(b) 30 years (years 21 through 50).
(c) How much less per year is needed when the withdrawal horizon decreases from infinity to 30 years?