a) Enter your desired amount of money you wish to receive each month while retired = 3 7000 b) Upon retirement (40 years from now) you want to receive "x dollars" (amount of money yo Part a) each month for a period of 28 years. This money resides in an account that pays 6.4% How much money must be in the account to fulfill your goal? Amount of money needed

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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desired amount is 7,000

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a) Enter your desired amount of money you wish to receive each month while retired =
7000
b) Upon retirement (40 years from now) you want to receive "x dollars" (amount of money you choose in
Part a) each month for a period of 28 years. This money resides in an account that pays 6.4% interest.
How much money must be in the account to fulfill your goal?
Amount of money needed = S
Round your answer to 2 decimal places as needed.
c) You plan to deposit money every month for 40 years into an account that pays 5.1%. What monthly
deposit must you make to achieve the amount of money determined in the answer to Part b above?
Payment amount $
Round your answer to 2 decimal places as needed.
d) How much money did you actually deposit into the account?
Total amount deposited = $
Round your answer to 2 decimal places as needed.
e) How much money will you actually receive in payments during retirement?
Total amount received = $
Round your answer to 2 decimal places as needed.
Transcribed Image Text:a) Enter your desired amount of money you wish to receive each month while retired = 7000 b) Upon retirement (40 years from now) you want to receive "x dollars" (amount of money you choose in Part a) each month for a period of 28 years. This money resides in an account that pays 6.4% interest. How much money must be in the account to fulfill your goal? Amount of money needed = S Round your answer to 2 decimal places as needed. c) You plan to deposit money every month for 40 years into an account that pays 5.1%. What monthly deposit must you make to achieve the amount of money determined in the answer to Part b above? Payment amount $ Round your answer to 2 decimal places as needed. d) How much money did you actually deposit into the account? Total amount deposited = $ Round your answer to 2 decimal places as needed. e) How much money will you actually receive in payments during retirement? Total amount received = $ Round your answer to 2 decimal places as needed.
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