You want to start funding your retirement. You plan to do this by making 60 semi-annual deposits of $4,000 beginning today, your 30th birthday. After that you do not plan to save any more. You expect to earn an APR of 10% compounded monthly from now until you retire. You plan to retire on your 70th birthday, and live until you are almost 90 (dying the day before your 90th birthday). Your first monthly withdrawal is on your 70th birthday (and the last withdrawal is the month before you are 90). After retirement you expect to earn an APR of 10%. How much can you with draw each month?
You want to start funding your retirement. You plan to do this by making 60 semi-annual deposits of $4,000 beginning today, your 30th birthday. After that you do not plan to save any more. You expect to earn an APR of 10% compounded monthly from now until you retire. You plan to retire on your 70th birthday, and live until you are almost 90 (dying the day before your 90th birthday). Your first monthly withdrawal is on your 70th birthday (and the last withdrawal is the month before you are 90). After retirement you expect to earn an APR of 10%. How much can you with draw each month?
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 44P
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You want to start funding your retirement. You plan to do this by making 60 semi-annual deposits of $4,000 beginning today, your 30th birthday. After that you do not plan to save any more. You expect to earn an APR of 10% compounded monthly from now until you retire.
You plan to retire on your 70th birthday, and live until you are almost 90 (dying the day before your 90th birthday). Your first monthly withdrawal is on your 70th birthday (and the last withdrawal is the month before you are 90). After retirement you expect to earn an APR of 10%. How much can you with draw each month?
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