Assume an APR of 12%. Bill wants to retire in 10 years from now. Starting a month from the time of retirement, he wants to withdraw $1,500 each month forever (This does not mean that he considers himself immortal). If Bill sets up a retirement account that earns 1% per month and starts depositing an equal amount every month for the next 10 years, how much should he deposit each month in order to accomplish his retirement goal? Assume that the first deposit will be a month from now.
Assume an APR of 12%. Bill wants to retire in 10 years from now. Starting a month from the time of retirement, he wants to withdraw $1,500 each month forever (This does not mean that he considers himself immortal). If Bill sets up a retirement account that earns 1% per month and starts depositing an equal amount every month for the next 10 years, how much should he deposit each month in order to accomplish his retirement goal? Assume that the first deposit will be a month from now.
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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Assume an APR of 12%. Bill wants to retire in 10 years from now. Starting a month from the time of retirement, he wants to withdraw $1,500 each month forever (This does not mean that he considers himself immortal). If Bill sets up a retirement account that earns 1% per month and starts depositing an equal amount every month for the next 10 years, how much should he deposit each month in order to accomplish his retirement goal? Assume that the first deposit will be a month from now.
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