Question
1. Today, you are retiring. You have a total of $387,419 in your retirement savings and have the funds invested at a guaranteed 3.68 percent,
1. Today, you are retiring. You have a total of $387,419 in your retirement savings and have the funds invested at a guaranteed 3.68 percent, compounded monthly. You want to withdraw $1,500 at the beginning of every month, starting today. You also want the withdrawals to stop when your account balance declines to $100,000. For how many years can you make withdrawals?
Multiple Choice
A. 36.52 years
B. 35.24 years
C. 36.22 years
D. 34.22 years
E. 34.43 years
2. Sierra estimates that she will have $24,000 in student loans by the time she graduates. The interest rate is 6.5 percent, compounded monthly. If she wants to have this debt paid in full within seven years following graduation, how much must she pay each month?
Multiple Choice
A. $4,375.95
B. $1,567.91
D. $364.66
E. $356.39
F. $3,503.26
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