Question

A) Scott plans to have $500,000 saved for retirement. His account earns 4% interest. How much will he be able to pull out each month, if he want to be able to take withdrawals for 15 years?

B)Scott now owes $470.81 on his credit card. He returns two items for $45.14 and $50.38 and then makes purchases of $34.50 and $33.83. What is the new balance on the card?

Answer 1

A)

=PMT(rate,n,pv)

=PMT(4%/12,15*12,-500000)

=3698.44

B)

New balance =Currently owed+Items returned-Purchases made

=470.81+45.14+50.38-34.5-33.83

=498