22Marvin plans to retire at the end of this year (2022). Hisexpected life expectancy is 25 years after retirement. Marvinut ofhas come to you, his financial advisor to learn how much heuestionshould deposit on December 31, 2022 to be able to withdraw$4,000 at the end of each month for the next 25 years.Assuming the amount on deposit will earn annual interest of2% compounded monthly, how much should Marvin depositon December 31, 2022 in order to achieve his retirement plan?O a. $1,555,284.50O b. S865,405.73Oc $943,720.43O d. $790,696,14

Given as, PMT=4000 RATE =2%/12 N=25 x 12=300

Answered: on December 31, 2022 to be ab d of each…

on December 31, 2022 to be ab d of each month for the next 2 mount on deposit will earn ann d monthly, how much should M

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

22
Marvin plans to retire at the end of this year (2022). His
expected life expectancy is 25 years after retirement. Marvin
ut of
has come to you, his financial advisor to learn how much he
uestion
should deposit on December 31, 2022 to be able to withdraw
$4,000 at the end of each month for the next 25 years.
Assuming the amount on deposit will earn annual interest of
2% compounded monthly, how much should Marvin deposit
on December 31, 2022 in order to achieve his retirement plan?
O a. $1,555,284.50
O b. S865,405.73
Oc $943,720.43
O d. $790,696,14

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