Suppose you want to have $800,000 for retirement in 25 years. Your account earns 5% interest. a) How much would you need to deposit in the account each month? (Round to the nearest cent.) $ b) How much interest will you earn? (Round to the nearest cent.) $ c) Suppose you waited 10 years to invest in the same retirement fund and have the same $800,000 for retirement at the same 5% interest. What amount will you have to deposit each month to match the value of your annuity? (Round to the nearest cent.) $
Suppose you want to have $800,000 for retirement in 25 years. Your account earns 5% interest. a) How much would you need to deposit in the account each month? (Round to the nearest cent.) $ b) How much interest will you earn? (Round to the nearest cent.) $ c) Suppose you waited 10 years to invest in the same retirement fund and have the same $800,000 for retirement at the same 5% interest. What amount will you have to deposit each month to match the value of your annuity? (Round to the nearest cent.) $
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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Transcribed Image Text:Suppose you want to have $800,000 for retirement in 25 years. Your account earns 5% interest.
a) How much would you need to deposit in the account each month?
(Round to the nearest cent.)
b) How much interest will you earn?
(Round to the nearest cent.)
c) Suppose you waited 10 years to invest in the same retirement fund and have the same $800,000 for
retirement at the same 5% interest. What amount will you have to deposit each month to match the value
of your annuity?
(Round to the nearest cent.)
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