Logo
Home Study Material Contact Search
AI Chat FREE
  1. mathematics
  2. advance math
  3. you wish to retire in 18 years , at which time , y

You wish to retire in 18 years , at which time , you want to have...

70.2K

Verified Solution

Question

Advance Math

You wish to retire in 18 years , at which time , you want tohave accumulated enough money to receive an annuity of $500 monthlyfor 20 years of retirement. During the period before retirement youcan earn 4% annually,while after retirement you can earn 6 percenton your money. What monthly contributions to the retirement fundwill allow you to receive the 500 dollars annuity?

Answer & Explanation Solved by verified expert
4.2 Ratings (534 Votes)
First we need to find the present value to be required to withdraw of 500 monthly for 20 years at the rate of 6 We can find by using the present value formula Pmt Periodic payment 500 i interest rate per period 6 6100 006 compounded    See Answer
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!
Become a Member

Other questions asked by students

Q

How these items are impacted under the New Legislation.1. Unearned Income of Children2. Capital...How...

Accounting
Q

What type of climate is generally found in costal sage scrub areas? How would this affect...

Biology
Q

You are designing different liposomes for drug delivery through the blood stream and for skin application...

Biology
Q

    20.    Which of the following is not true of the pineal gland? a. It is located in...

Medical Sciences
Q

The position of a particle is given by x = 1/3t3 - 2t2 and y...

Physics
Q

what are some of the things that all three firms offer to motivate new employees

Accounting
Q

15. Mr. and Mrs. Green just gave birth to fraternal twins. Unfortunately, the nurse mixed...

Biology
Q

In an LCR series AC circuit voltage across resistance is 2 volt The inductive and...

Physics
Q

7 A resistance of 202 is connected across one gap of a metre bridge and...

Physics
Q

Macmillan Learn In a certain right triangle the side opposite one of the acute angles...

Basic Math
Q

Please answer the following question. You can create an excel sheet or a word document...

Accounting
Q

What is depreciation and why is it important? You must start a thread before you...

Accounting