A woman, with her employer's matching program, contributes $500 at the end of each month to her retirement account, which earns 5% interest, compounded monthly. When she retires after 42 years, she plans to make monthly withdrawals for 29 years. If her account earns 4% interest, compounded monthly, then when she retires, what is her maximum possible monthly withdrawal (without running out of money)? The maximum possible monthly withdrawal is approximately $ (Simplify your answer. Round to the nearest cent as needed.)
A woman, with her employer's matching program, contributes $500 at the end of each month to her retirement account, which earns 5% interest, compounded monthly. When she retires after 42 years, she plans to make monthly withdrawals for 29 years. If her account earns 4% interest, compounded monthly, then when she retires, what is her maximum possible monthly withdrawal (without running out of money)? The maximum possible monthly withdrawal is approximately $ (Simplify your answer. Round to the nearest cent as 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
Section: Chapter Questions
Problem 1PS
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Trying to find the max possible withdrawal it says to round to nearest cent.. please help
Transcribed Image Text:A woman, with her employer's matching program, contributes $500 at the end of each month to her retirement account, which earns 5% interest, compounded monthly.
When she retires after 42 years, she plans to make monthly withdrawals for 29 years. If her account earns 4% interest, compounded monthly, then when she retires,
what is her maximum possible monthly withdrawal (without running out of money)?
The maximum possible monthly withdrawal is approximately $.
(Simplify your answer. Round to the nearest cent as needed.)
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