Please find below answeres
Present Value of Ordinary Annuity | = | C *[(1-(1+i/100)^(-n))/(i/100] | |||||
C = Cash flow per period | |||||||
I= interrest rate | |||||||
N= number of payments | |||||||
$ 568,900 | = | Cashflow | * | [(1-(1+5.2/1200)^(-23*12))/(5.2/1200}] | |||
$ 568,900 | Cashflow | * | [1-(1+0.004333)^(-23*12))/0.004333] | ||||
$ 568,900 | Cashflow | * | [1-(1.004333)^(-23*12))/0.004333] | ||||
$ 568,900 | Cashflow | * | [(1-0.303186)/0.004333] | ||||
$ 568,900 | Cashflow | * | {0.696813/0.004333} | ||||
$ 568,900 | Cashflow | * | 160.8374 | ||||
Cashflow | 568900/160.8374 | ||||||
Note 1 : Monthly annuity | Monthly | Cashflow | $ 3,537.85 | ||||
Because of question ask of monthly annutiy below asumptions have been used | |||||||
Number of payments in years | 23 | ||||||
Number of payments in month | 23*12 | ||||||
Number of payments in month terms | 276 | ||||||
Interest Rate for year | 5.20% | ||||||
Interest Rate for month | 5.2%/12 | ||||||
Interest Rate for month terms | 0.43% | ||||||
Note 2 : Negative power | |||||||
power(1.0043333,-23*12) | 0.303186556 |
Please answer all parts with work 2. You retire at age 60 and expect to live...
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Nana just retired at the age of 62 and expects to live until she is 85 years old. She has $402,000 in her retirement savings account. She is somewhat conservative with her money and expects to earn 6 percent during her retirement years. How much can she withdraw from her retirement savings at the end of each month if she plans to spend her last penny on the morning of her death? b) Nana has some extra cash on hand...