# tes7. Suppose your employer offers a monthly annuity at 7.3% annual interest.a. If you can afford to put \$800 per month into your annuity, and you wish to retire12you retire?b. Suppose instead that you wish to retire in 23 years, but now you want to be ableto withdraw \$6,000 per month for 30 years after you retire. Supposing that youcan get the 7.3% in perpetuity, how much will you have to accumulate in 23years to meet your retirement goals? How much will you have to put you're yourretirement account each month in order to save the required amount?in 23 years, then how much will your annuity be worth whenaphicallyall the conty

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Step 1

7a) Future value of annuity formula is used as below:

Step 2

Answer: The annuity would be worth \$569,818.99

Step 3

b-1

Amount that needs to be accumulated in 23 years to meet the retirement goa...

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