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Refer to Exercise #30. If John waits until he is 35 to start investing for his retirement, then he needs to invest $ Hint: Follow Example 9 but reset the perimeters. each month in order to have the same amount when he retires at 67. (Round the answer to an integer at the last step.)

Refer to Exercise #30. If John waits until he is 35 to start investing for his retirement, then he needs to invest $ Hint: Follow Example 9 but reset the perimeters. each month in order to have the same amount when he retires at 67. (Round the answer to an integer at the last step.)

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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USE THE FIRST PART WITH CORRECT ANSWERS TO ANSWER THE SECOND PART. THANKS IN ADVANCE.

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This is Section 5.2 Problem 30: John is 28 years old and plans to retire at 67. He wants to have a fund at 67 that will let him spend $4,500 a month after retirement, and last for 45 years. Assume a continuous money flow. Answer the following. Round your answers (at the last step) to integers. (a) Suppose that after his retirement John puts the money in a fund paying interest at an annual rate of 4.2%, compounded continuously. Then John will need $ 1091479 (b) Suppose that John starts to invest a fixed amount each month from now until he retires, in a fund that pays interest at an annual rate of 6.2%, compounded continuously. Then he should invest $ 551 for his retirement. each month.
Transcribed Image Text:This is Section 5.2 Problem 30: John is 28 years old and plans to retire at 67. He wants to have a fund at 67 that will let him spend $4,500 a month after retirement, and last for 45 years. Assume a continuous money flow. Answer the following. Round your answers (at the last step) to integers. (a) Suppose that after his retirement John puts the money in a fund paying interest at an annual rate of 4.2%, compounded continuously. Then John will need $ 1091479 (b) Suppose that John starts to invest a fixed amount each month from now until he retires, in a fund that pays interest at an annual rate of 6.2%, compounded continuously. Then he should invest $ 551 for his retirement. each month.
This is Section 5.2 Problem 34: Refer to Exercise # 30. If John waits until he is 35 to start investing for his retirement, then he needs to invest $ Hint: Follow Example 9 but reset the perimeters. each month in order to have the same amount when he retires at 67. (Round the answer to an integer at the last step.)
Transcribed Image Text:This is Section 5.2 Problem 34: Refer to Exercise # 30. If John waits until he is 35 to start investing for his retirement, then he needs to invest $ Hint: Follow Example 9 but reset the perimeters. each month in order to have the same amount when he retires at 67. (Round the answer to an integer at the last step.)
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