Question
1. Martha is currently 45 years old and plans on retiring at the age of 60. Ideally, Martha would like to retire with $500,000. A.
1. Martha is currently 45 years old and plans on retiring at the age of 60. Ideally, Martha would like to retire with $500,000. A. How much would Martha have to deposit on an annual basis to reach her goal if she can get a return of 16% compounded annually? B. How much would Martha have to deposit on a monthly basis to reach her goal if she can get a return of 12% compounded monthly? C. If Martha can only deposit $475 on a monthly basis, what annual rate would she have to receive to reach her goal? D. If Martha can only find an annual return of 6% compounded on a monthly basis and can only deposit $375 every month, how much will she have once she retires? E. If Martha was quoted an APR of 9%, what is her effective annual rate with daily compounding?
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