(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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