Explanation Given The monthly retirement amount Jason would withdraw per month on delay is $ 8000 The duration for which Jason would withdraw the retirement amount is 20 years . The interest rate is 6% / year . Periods per year is 12 Approach: Write the formula to calculate the interest. i = r m Here, i is the interest, r is the annual interest rate and m is number of periods per year. Write the formula to calculate the number of payments. n = m t Here, n is the number of payment and t is the time period. Write the formula to calculate the periodic payment. R = S i ( 1 + i ) n − 1 Here, R is the periodic payment, S is the accumulated value of annuity. Calculation: Calculate the present value of the annuity. P = R ( 1 − ( 1 + i ) − n i ) → ( 1 ) Substitute 6 % for r and 12 for m in the above mentioned formula for interest. i = 6 % 12 = 6 100 ( 12 ) = 0.005 Substitute 12 for m and 20 for t in the above mentioned formula for number of payments. n = ( 12 ) ( 20 ) = 240 Substitute $ 8000 for R , 0

Finite Mathematics for the Managerial, Life, and Social Sciences, 11th Edition

11th Edition

ISBN: 9781285464657

Author: Soo T. Tan

Publisher: Brooks Cole

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Chapter 5.3, Problem 37E

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The monthly contribution Jason should make for 30 years when he works for additional five years.

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Chapter 5.3, Problem 36E

Chapter 5.3, Problem 38E

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Finite Mathematics for the Managerial, Life, and Social Sciences, 11th Edition

Ch. 5.1 - Explain the difference between simple interest and...Ch. 5.1 - Prob. 2CQ Ch. 5.1 - Prob. 3CQ Ch. 5.1 - Prob. 1E Ch. 5.1 - Prob. 2E Ch. 5.1 - Find the accumulated amount at the end of 9months...Ch. 5.1 - Find the accumulated amount at the end of 8months...Ch. 5.1 - Prob. 5E Ch. 5.1 - A bank deposit paying simple interest at the rate...Ch. 5.1 - Prob. 7E

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The monthly contribution Jason should make for 30 years when he works for additional five years.

Solution Summary: The author explains the monthly contribution Jason should make for 1,111.63 when he works for additional five years.

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The monthly contribution Jason should make for 30 years when he works for additional five years.