1. Mark and Sylvia Foster have accumulated $1.2 million for their retirement, which begins today....
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1. Mark and Sylvia Foster have accumulated $1.2 million for their retirement, which begins today. They plan to receive monthly payments from their investments, which will be paid at the beginning of each month over the next 30 years. If investments are accumulating at an annual rate of 8%, compounded monthly, what will be the payment amount that the Fosters will receive each month?
2. Tess and Robert have accumulated $750,000 in their retirement account which pays 5.75% compounded monthly. They have contributed $500 to this account, every month for the past 28 years. They began the account with a small inheritance that Tess received from her grandparents. How much (to the nearest dollar) did they put into the account to begin it?
3. When Johnny started his account with an investment of $10,560, it was generating 3.5% per year, compounded annually. That was 15 years ago, but today he found an equally safe account where he will more than double his interest rate to 7.65% per year, so pulled all his money out of the old account and placed it in this new account. He plans to leave the funds alone for another 15 years, at which time he may retire. At that time, how much should Johnny expect to have in the account
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