A person wants to establish an annuity for retirement. He wants to make monthly deposits...
50.1K
Verified Solution
Link Copied!
Question
Accounting
A person wants to establish an annuity for retirement. He wants to make monthly deposits for 2525 years so that he can then make monthly withdraws of $3,600.00$3,600.00 for 1010 years. The annuity earns 7.67.6% compounded monthly.
(a) How much will have to be in the account at the time he retires?
Value of account at retirement:
[Note: Your answer is a dollar amount and should have a dollar sign and exactly two decimal places.]
(b) How much should be deposited each month for 2525 years in order to accumulate the required amount?
monthly deposit:
[Note: Your answer is a dollar amount and should have a dollar sign and exactly two decimal places.]
(c) What is the total amount of interest earned during the 3535-year period?
Total Interest Earned:
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
