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Suppose you are 25 years old and would like to retire at age 60. Furthermore, you would like to have a retirement fund from which you can draw an income of $125,000 per year-forever! How much would you need to deposit each month to do this? Assume a constant APR of 6% and that the compounding and payment periods are the same. To draw $125,000 per year, there must be S in your savings account when you retire. (Do not round until the final answer. Then round to the nearest integer as needed.)

Suppose you are 25 years old and would like to retire at age 60. Furthermore, you would like to have a retirement fund from which you can draw an income of $125,000 per year-forever! How much would you need to deposit each month to do this? Assume a constant APR of 6% and that the compounding and payment periods are the same. To draw $125,000 per year, there must be S in your savings account when you retire. (Do not round until the final answer. Then round to the nearest integer as needed.)

Intermediate Algebra
Intermediate Algebra
10th Edition
ISBN:9781285195728
Author:Jerome E. Kaufmann, Karen L. Schwitters
Publisher:Jerome E. Kaufmann, Karen L. Schwitters
Chapter11: Exponential And Logarithmic Functions
Section11.2: Applications Of Exponential Functions
Problem 27PS
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Suppose you are 25 years old and would like to retire at age 60. Furthermore, you would like to have a retirement fund from which you can draw an income of $125,000 per year-forever! How much would you need to deposit each month to do this? Assume a constant APR of 6% and that the compounding and payment periods are the same. To draw $125,000 per year, there must be $ in your savings account when you retire. (Do not round until the final answer. Then round to the nearest integer as needed.)
Transcribed Image Text:Suppose you are 25 years old and would like to retire at age 60. Furthermore, you would like to have a retirement fund from which you can draw an income of $125,000 per year-forever! How much would you need to deposit each month to do this? Assume a constant APR of 6% and that the compounding and payment periods are the same. To draw $125,000 per year, there must be $ in your savings account when you retire. (Do not round until the final answer. Then round to the nearest integer as needed.)
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