You decide to make monthly payments into a retirement fund earning 4.75% compounded monthly.Note: Payments are made at the end of each period. Suppose you want to use this fund to buy a $346,000 houseboat when you retire in 40 years. Howmuch do you need to deposit each month in order to achieve this goal?$Round to the nearest dollar.

Future value = $346,000 Interest rate = 4.75% compounded monthly Period = 40 years Payments are…

Answered: Suppose you want to use this fund to…

Suppose you want to use this fund to buy a $346,000 houseboat when you retire in 40 years. How much do you need to deposit each month in order to achieve this goal? $ Round to the nearest dollar.

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

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Question

You decide to make monthly payments into a retirement fund earning 4.75% compounded monthly.
Note: Payments are made at the end of each period.

Suppose you want to use this fund to buy a $346,000 houseboat when you retire in 40 years. How
much do you need to deposit each month in order to achieve this goal?
$
Round to the nearest dollar.

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