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w much money must Parker have in his account on the nis retirement? v much must Parker deposit at the end of each mont ow until retirement in order to have enough to fund e that he already has $30,000 in his account and the

w much money must Parker have in his account on the nis retirement? v much must Parker deposit at the end of each mont ow until retirement in order to have enough to fund e that he already has $30,000 in his account and the

Essentials Of Investments
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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Parker is doing some retirement planning. He would like to have a retirement income of $3,000 at the beginning of each month during his retirement. He expects his retirement to last for 20 years and that his fund will earn j12-3.6% during retirement. a) How much money must Parker have in his account on the day he retires in order to fund his retirement? b) How much must Parker deposit at the end of each month into his retirement fund from now until retirement in order to have enough to fund his retirement goal? Assume that he already has $30,000 in his account and that he will retire in 30 years
Transcribed Image Text:Parker is doing some retirement planning. He would like to have a retirement income of $3,000 at the beginning of each month during his retirement. He expects his retirement to last for 20 years and that his fund will earn j12-3.6% during retirement. a) How much money must Parker have in his account on the day he retires in order to fund his retirement? b) How much must Parker deposit at the end of each month into his retirement fund from now until retirement in order to have enough to fund his retirement goal? Assume that he already has $30,000 in his account and that he will retire in 30 years
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