Nick has calculated his retirement needs. He would like to receive $1,000 per month for 20 years after retirement. His plan is to retire in 15 years. He is trying to compute the amount he must put away now at 8% compounded semiannually to generate the sum needed for retirement. After checking with some financial planners, he finds that the typical risk free interest he can expect to receive on his retirement income is about 7% compounded monthly. How much does Nick have to put away now ?
Unitary Method
The word “unitary” comes from the word “unit”, which means a single and complete entity. In this method, we find the value of a unit product from the given number of products, and then we solve for the other number of products.
Speed, Time, and Distance
Imagine you and 3 of your friends are planning to go to the playground at 6 in the evening. Your house is one mile away from the playground and one of your friends named Jim must start at 5 pm to reach the playground by walk. The other two friends are 3 miles away.
Profit and Loss
The amount earned or lost on the sale of one or more items is referred to as the profit or loss on that item.
Units and Measurements
Measurements and comparisons are the foundation of science and engineering. We, therefore, need rules that tell us how things are measured and compared. For these measurements and comparisons, we perform certain experiments, and we will need the experiments to set up the devices.
Nick has calculated his retirement needs. He would like to receive $1,000 per month for 20 years after retirement.
His plan is to retire in 15 years. He is trying to compute the amount he must put away now at 8% compounded semiannually to generate the sum needed for retirement. After checking with some financial planners, he finds that the typical risk free interest he can expect to receive on his retirement income is about 7% compounded monthly. How much does Nick have to put away now ?
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