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
Related questions
Question

Transcribed Image Text:c. How much will the family receive (to the nearest dollar)?
647.51/1-6
1-(1.005264
.OOS
647.51.146.4 = 94795.46
150000-94795.46-55204.54₁,6 = 33122.72
4. A couple are planning for retirement. They plan to retire at age 70. At that time they wish to be able to
withdraw $7500 per month from their retirement account for a period of 25 years, reducing the balance to
zero. How much should they start saving now in an account that pays 7.54% compounded monthly to
achieve their goal? Assume that they will be able to earn at least 7.54% interest compounded monthly from
now until they are age 95.
nt
How much interest is earned over the 65 year period?
A = P(1 + £ ) m²
FV= PMT ((1+1)^-1)
7500 (1.076+25-1)
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