John is currently 25 years old. He has $10,000 saved up and wishes to deposit this into a savings account which pays him J12 = 6% p.a. He also wishes to deposit SX every month into that account so that when he retires at 55, he can withdraw $2000 every month end to support his retirement. He expects to live up till 70 years. How much should he deposit every month into his account?
John is currently 25 years old. He has $10,000 saved up and wishes to deposit this into a savings account which pays him J12 = 6% p.a. He also wishes to deposit SX every month into that account so that when he retires at 55, he can withdraw $2000 every month end to support his retirement. He expects to live up till 70 years. How much should he deposit every month into his account?
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 39P
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Transcribed Image Text:John is currently 25 years old. He has $10,000 saved up and wishes to deposit this into a savings account which pays him J12 = 6% p.a. He also
wishes to deposit SX every month into that account so that when he retires at 55, he can withdraw $2000 every month end to support his retirement.
He expects to live up till 70 years. How much should he deposit every month into his account?
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