You have just had your 30th birthday. You have two children. One will go to college 10 years from now and require four yearly payments for college expenses of $10000, $11000, $12000 and $13000. The second child will go to college 15 years from now and require four yearly payments for college expenses of $15000, $16000, $17000, and $18000. In addition, you plan to retire in 30 years. You want to be able to withdraw $50000 per year from an account throughout your retirement. You expect to live 20 years beyond retirement. The first withdrawal will occur on your 61st birthday. All savings earn a 13% annual rate of return.
What equal, annual amount must you save for each of the next 30 years in order to meet these goals?
I am really lost. I dont know how to solve this question. I only know that i have to calculate the present value of the first and second child and for the retirement annuity. Anyone can guide me with this question pls............
thanks in advance