thday, you will make the first monthly contribution of $200 into the fund that will earn 6%/year compounded annually. You will make your last payment into the fund on your 65th birthday. At age 65, when you retire, you have decided to opt for 30 years of equal bi-weekly payments (one payment every two weeks) from the fund with the first payment starting two weeks after your 65th birthday. How large will each payment be, assuming the fund will still be earning 6%/year compounded annuall
thday, you will make the first monthly contribution of $200 into the fund that will earn 6%/year compounded annually. You will make your last payment into the fund on your 65th birthday. At age 65, when you retire, you have decided to opt for 30 years of equal bi-weekly payments (one payment every two weeks) from the fund with the first payment starting two weeks after your 65th birthday. How large will each payment be, assuming the fund will still be earning 6%/year compounded annuall
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 23P
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You wish to build an independent fund for your retirement planned for your 65th birthday. On your 30th birthday, you will make the first monthly contribution of $200 into the fund that will earn 6%/year compounded annually. You will make your last payment into the fund on your 65th birthday. At age 65, when you retire, you have decided to opt for 30 years of equal bi-weekly payments (one payment every two weeks) from the fund with the first payment starting two weeks after your 65th birthday. How large will each payment be, assuming the fund will still be earning 6%/year compounded annually?
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