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A friend of yours currently has $75000 in her retirement account. If she can earn 3.7% APY, and would like to retire 32.3333

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Answer #1

Calculating Value of Perpetuity,

Value of Perpetuity = 4,300/(0.037/12) = $1,394,594.60

Calculating Monthly Deposit Required,

Using TVM Calculation,

PMT = [PV = -75,000, FV = 1,394,594.60, I = 0.037/12, N = 388]

PMT = $1,536

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