Question
1.You want to be able to withdraw $25,000 from your account each year for 20 years after you retire. You expect to retire in 25
1.You want to be able to withdraw $25,000 from your account each year for 20 years after you retire. You expect to retire in 25 years. If your account earns 8% interest, how much will you need to deposit each year until retirement to achieve your retirement goals?
2. Suppose you invest $200 a month for 6 years into an account earning 9% compounded monthly. After 6 years, you leave the money, without making additional deposits, in the account for another 22 years. How much will you have in the end?
3.Krystal is making quarterly contributions of of $480 to her savings account which pays interest at the APR of 7.9%, compounded quarterly. Right after Krystal makes her 70th contribution, the bank changes the APR to 5.3% and Krystal makes 46 more $480 contributions. What is Krystal's balance right after her last contribution?
4.Tiana and Jaime plan to send their son to university. To pay for this they will contribute 10 equal yearly payments to an account bearing interest at the APR of 7%, compounded annually. Five years after their last contribution, they will begin the first of five, yearly, withdrawals of $56,100 to pay the university's bills. How large must their yearly contributions be?
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