(XI) Suppose you plan to retire at age 70, and you want to be able to withdraw...
(XI) Suppose you plan to retire at age 70, and you want to be able to withdraw an amount of $7,000 per month beginning with the first month after your 70th birthday until you reach your birthday at age 100. If the account which contains your savings earns 6% APR compounded monthly, how much money needs to be in the account by the time you reach your 70th birthday? (Answer to the nearest dollar.)
Homework Answers
Money needed in the account by the time one reaches 70 years of
age=7000/(6%/12)*(1-1/(1+6%/12)^360)
=1167541.301
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(XI) Suppose you plan to retire at age 70, and you
want to be able to withdraw...
Suppose you plan to retire at age 70, and you want to be able to withdraw...
Suppose you plan to retire at age 70, and you want to be able to withdraw an amount of $7,000 per month beginning with the first month after your 70th birthday until you reach your birthday at age 100. If the account which contains your savings earns 6% APR compounded monthly, how much money needs to be in the account by the time you reach your 70th birthday? (Answer to the nearest dollar)
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Suppose you plan to retire at age 70, and you want to be able to withdraw an amount of $7,000 per month beginning with the first month after your 70th birthday until you reach your birthday at age 100. If the account which contains your savings earns 6% APR compounded monthly, how much money needs to be in the account by the time you reach your 70th birthday? (Answer to the nearest dollar)
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You want to be able to withdraw $40,000 from your account each year for 30 years after you retire. If you expect to retire in 25 years and your account earns 5.6% interest while saving for retirement and 4.1% interest while retired: Round your answers to the nearest cent as needed. a) How much will you need to have when you retire? b) How much will you need to deposit each month until retirement to achieve your retirement goals? c)...
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