88 You decide to make monthly payments into a retirementfund earning 4.75% compounded monthly. Note:Payments are made at the end of each period. Suppose you want to use this fund to buy a $279,000houseboat when you retire in 40 years. How much do youneed to deposit each month in order to achieve this goal?$Round to the nearest dollar.LA

Future Value = $279,000 Interest Rate = 4.75% Time Period = 40 Years

Answered: Suppose you want to use this fund to…

Suppose you want to use this fund to buy a $279,000 houseboat when you retire in 40 years. How much do you need to deposit each month in order to achieve this goal? $ Round to the nearest dollar. tA

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 22PROB

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Concept explainers

Employer Pension Plan

An employer pension plan is a retirement benefit provided by an employer to employees before or after they retire. Over the course of the employees' working lives, the employer should invest a lump sum or make monthly contributions to investment schemes in employees' names. It is the employer's legal responsibility to provide employees with retirement plans that support them with guaranteed financial security in retirement.

Question

You decide to make monthly payments into a retirement
fund earning 4.75% compounded monthly. Note:
Payments are made at the end of each period.

Suppose you want to use this fund to buy a $279,000
houseboat when you retire in 40 years. How much do you
need to deposit each month in order to achieve this goal?
$
Round to the nearest dollar.
LA

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