Kelly just started retirement with $500000 in his retirement account. The retirement account has an annual interest rate of 6.5%, compounded monthly. If Kelly plans on living 30 more years, how much can she remove from her account each month in order to empty it after 30 years?
Kelly just started retirement with $500000 in his retirement account. The retirement account has an annual interest rate of 6.5%, compounded monthly. If Kelly plans on living 30 more years, how much can she remove from her account each month in order to empty it after 30 years?
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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Transcribed Image Text:Kelly just started retirement with $500000 in his
retirement account. The retirement account has an
annual interest rate of 6.5%, compounded monthly. If
Kelly plans on living 30 more years, how much can she
remove from her account each month in order to
empty it after 30 years?
Lucas made a single deposit into a savings account. At
the end of saving for 18 years, Lucas has $8000 in his
account. If the account gained interest continuously at
a rate of 7%, how much did Lucas initially invest?
Transcribed Image Text:Isabelle wants to save for retirement. She earns $5400
in income each month, and wishes to deposit 10% of
her income into a savings acount each month. If the
savings account has a nominal interest rate of 7%,
compounded monthly, how much will be in the account
if she retires in 35 years?
John won a lottery. After taxes, he was able to take
home his winnings worth $510000. He decides to
deposit 20% of this in a separate savings account for
retirement. If the savings account has a nominal
interest rate of 7%, compounded monthly, how much
will be in the account if he retires in 35 years?
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