A man turns 35 today and wishes to provide supplemental retirement income of 3000 at the beginning of each month starting on his 60th birthday. Starting today, he makes monthly contributions of X to a fund for 25 years. The fund earns an annual nominal interest rate of 8% compounded monthly. On his 60th birthday, each 1000 of the fund will provide 9.65 of income at the beginning of each month starting immediately and continuing as long as he survives. Calculate X. a. 324.70 b. 326.90 c. 328.10 d. 355.50 e. 450.70
A man turns 35 today and wishes to provide supplemental retirement income of 3000 at the beginning of each month starting on his 60th birthday. Starting today, he makes monthly contributions of X to a fund for 25 years. The fund earns an annual nominal interest rate of 8% compounded monthly. On his 60th birthday, each 1000 of the fund will provide 9.65 of income at the beginning of each month starting immediately and continuing as long as he survives. Calculate X. a. 324.70 b. 326.90 c. 328.10 d. 355.50 e. 450.70
Chapter4: Gross Income: Concepts And Inclusions
Section: Chapter Questions
Problem 52P
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A man turns 35 today and wishes to provide supplemental retirement income of 3000 at the
beginning of each month starting on his 60th birthday. Starting today, he makes monthly contributions
of X to a fund for 25 years. The fund earns an annual nominal interest rate of 8% compounded monthly.
On his 60th birthday, each 1000 of the fund will provide 9.65 of income at the beginning of each month
starting immediately and continuing as long as he survives.
Calculate X.
a. 324.70
b. 326.90
c. 328.10
d. 355.50
e. 450.70
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