3. You have $400,000 saved for retirement. Your account earns 6% interest. How much will you be able to pull out each month, if you want to be able to take withdrawals for 25 years?

4. You deposit $600 each month into an account earning 4% interest compounded monthly. a) How much will you have in the account in 12 years?

b) How much total money will you put into the account?

c) How much total interest will you earn?

5. Suppose you want to have $700,000 for retirement in 25 years. Your account earns 9% interest. a) How much would you need to deposit in the account each month?

b) How much interest will you earn?

6. You deposit $2100 in a savings account paying 5.5% simple interest. The solution to this problem is not accomplished by an excel formula. Use the formula I = PRT where T is in years a) How much interest will you earn in 18 months?

b) How much will be in your account at the end of 18 months?