After graduating from college with a bachelor of business administration, you begin an ambitious plan to retire in 25.00 years. To build up your retirement fund, you will make quarterly payments into a mutual fund that on average will pay 12.08% APR compounded quarterly. To get you started, a relative gives you a graduation gift of $3,747.00. Once retired, you plan on moving your investment to a money market fund that will pay 4.68% APR with monthly compounding. As a young retiree, you believe you will live for 32.00 more years and will make monthly withdrawals of $10,514.00. (YOUR WITHDRAWALS ARE AT THE BEGINNING OF THE MONTH!!!!) To meet your retirement needs, what quarterly payment should you make?
After graduating from college with a bachelor of business administration, you begin an ambitious plan to retire in 25.00 years. To build up your retirement fund, you will make quarterly payments into a mutual fund that on average will pay 12.08% APR compounded quarterly. To get you started, a relative gives you a graduation gift of $3,747.00. Once retired, you plan on moving your investment to a money market fund that will pay 4.68% APR with monthly compounding. As a young retiree, you believe you will live for 32.00 more years and will make monthly withdrawals of $10,514.00. (YOUR WITHDRAWALS ARE AT THE BEGINNING OF THE MONTH!!!!) To meet your retirement needs, what quarterly payment should you make?
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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Kl. 268.
Transcribed Image Text:After graduating from college with a bachelor of business administration, you begin an ambitious plan to retire in 25.00
years. To build up your retirement fund, you will make quarterly payments into a mutual fund that on average will pay
12.08% APR compounded quarterly. To get you started, a relative gives you a graduation gift of $3,747.00.
Once retired, you plan on moving your investment to a money market fund that will pay 4.68 % APR with monthly
compounding. As a young retiree, you believe you will live for 32.00 more years and will make monthly withdrawals of
$10,514.00. (YOUR WITHDRAWALS ARE AT THE BEGINNING OF THE MONTH!!!!) To meet your retirement needs, what
quarterly payment should you make?
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