A man is planning to retire in 20 years. He can deposit money for his retirement at 8% compounded monthly. It is estimated that the future general inflation (f) rate will be 3% compounded annually. What deposit must be made each month until the man retires so that he can make annual withdrawals of $20,000, in terms of today's dollars, over the 15 years following his retirement? (Assume that his first withdrawal occurs at the end of the first six months after his retirement.)

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A:

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Q: deposits

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Amortized Loans

The term "amortization" refers to spreading the value of a loan or a debt over a series of regular payments or installments comprising of both the principal and interest amount. It generally involves the process where in the value of a loan or an intangible asset is written down over its maturity period.