A woman, with her employer's matching program, contributes $500 at the end of each month to her retirement account, which earns 5% interest, compounded monthly. When she retires after 42 years, she plans to make monthly withdrawals for 29 years. If her account earns 4% interest, compounded monthly, then when she retires, what is her maximum possible monthly withdrawal (without running out of money)? The maximum possible monthly withdrawal is approximately $ (Simplify your answer. Round to the nearest cent as needed.)

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter5: The Time Value Of Money
Section: Chapter Questions
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Trying to find the max possible withdrawal it says to round to nearest cent.. please help
A woman, with her employer's matching program, contributes $500 at the end of each month to her retirement account, which earns 5% interest, compounded monthly.
When she retires after 42 years, she plans to make monthly withdrawals for 29 years. If her account earns 4% interest, compounded monthly, then when she retires,
what is her maximum possible monthly withdrawal (without running out of money)?
The maximum possible monthly withdrawal is approximately $.
(Simplify your answer. Round to the nearest cent as needed.)
Transcribed Image Text:A woman, with her employer's matching program, contributes $500 at the end of each month to her retirement account, which earns 5% interest, compounded monthly. When she retires after 42 years, she plans to make monthly withdrawals for 29 years. If her account earns 4% interest, compounded monthly, then when she retires, what is her maximum possible monthly withdrawal (without running out of money)? The maximum possible monthly withdrawal is approximately $. (Simplify your answer. Round to the nearest cent as needed.)
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