Today is your 20th birthday, and your parents just gave you $5000 that you plan to use to open a stock brokerage account.
You plan to add $500 to the account each year on your birthday. Your first $500 contribution will come one year from now on your 21st birthday. Your 45th and final $500 contribution will occur on your 65th birthday.
You plan to withdraw $5000 from the account five years from now on your 25th birthday to take a trip to Europe.
You also anticipate that you will need to withdraw $10000 from the account 10 years from now on your 30th birthday to take a trip to Asia. You expect that the account will have an average annual return of 12%.
How much money do you anticipate that you will have in the account on your 65th birthday, following your final contribution?