eanne and Harold Kimura want to set up a TDA that will generate sufficient interest at maturity to meet their living expenses, which they project to be $850 per month. (Round your answers to the nearest cent.) (a) Find the amount needed at maturity to generate $850 per month interest if they can get 6 1 2% interest compounded monthly. $ 156923.08 (b) Find the monthly payment that they would have to put into an ordinary annuity to obtain the future value found in part (a) if their money earns 8 1 4% and the term is twenty years.
eanne and Harold Kimura want to set up a TDA that will generate sufficient interest at maturity to meet their living expenses, which they project to be $850 per month. (Round your answers to the nearest cent.) (a) Find the amount needed at maturity to generate $850 per month interest if they can get 6 1 2% interest compounded monthly. $ 156923.08 (b) Find the monthly payment that they would have to put into an ordinary annuity to obtain the future value found in part (a) if their money earns 8 1 4% and the term is twenty years.
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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eanne and Harold Kimura want to set up a TDA that will generate sufficient interest at maturity to meet their living expenses, which they project to be $850 per month. (Round your answers to the nearest cent.)
(a) Find the amount needed at maturity to generate $850 per month interest if they can get
$ 156923.08
(b) Find the monthly payment that they would have to put into an ordinaryannuity to obtain the future value found in part (a) if their money earns
$
6
%
interest compounded monthly.| 1 |
| 2 |
$ 156923.08
(b) Find the monthly payment that they would have to put into an ordinary
8
%
and the term is twenty years.| 1 |
| 4 |
$
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