Concept explainers
Sally makes deposits into a retirement account every year from the age of 30 until she retires at age 65.
a. Sally plans to take regular monthly distributions from her retirement account from the time she retires until she is 80 years old, when the account will have a value of $0. How much should she take each month? Assume the interest rate is 4% per year, compounded monthly. (Hint: Use the formula given for Exercises 33 and 34 that calculates the monthly payments on a loan.)
b. What is the total of the payments she will receive? How much of the total will be her own money (see part b of Exercise 39), and how much will be interest?
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Calculus and Its Applications (11th Edition)
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