How much should John deposit into his saving account monthly now? Round your answer te nearest cent. If John wants the one million dollars in his saving account to last him 20 years into his retirement, how much could he withdraw from the saving account monthly? You can assum saving account will pay the same 2.4% annual interest rate. Round your answer to the neares cent. TF John inor bin monthl: donecit o)br のう00 も
How much should John deposit into his saving account monthly now? Round your answer te nearest cent. If John wants the one million dollars in his saving account to last him 20 years into his retirement, how much could he withdraw from the saving account monthly? You can assum saving account will pay the same 2.4% annual interest rate. Round your answer to the neares cent. TF John inor bin monthl: donecit o)br のう00 も
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
Chapter27: Time Value Of Money (compound)
Section: Chapter Questions
Problem 6E
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Expert Solution
Step 1
Period of investment =42 years
Retirement amount =$1000000
Annual interest =2.4%
Step 2
Future value FACTOR =(1+r)n-1/r
Future value FACTOR =(1.024)-42-1/0.024
Future value FACTOR =71.15
Future value =Future value FACTOR x annual payment
1000000=71.15 × annual payment
Annual payment =14054.81
Monthly payment =$1171.23
This amount should deposits in savings accounts monthly for retirement.
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