Suppose you are 30 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 ​$50,000 per year–​forever! How much would you need to deposit each month to do​this? Assume a constant APR of 8​% and that the compounding and payment periods are the same.

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 35P
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Suppose you are
30
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
​$50,000
per
year–​forever!
How much would you need to deposit each month to do​this? Assume a constant APR of
8​%
and that the compounding and payment periods are the same.
 
 

 

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