Question
(a) After working for 35 years, Adam was able to accumulate $641,000 in his retirement account. He decided to move the money from the stock
(a) After working for 35 years, Adam was able to accumulate $641,000 in his retirement account. He decided to move the money from the stock market and deposited it in an account that pays 3% compounded quarterly. Adam wishes to withdraw $8900 each quarter until the fund is depleted. Approximately how many YEARS will it take Adam to deplete the account?
(b) Ashley took a $7,000 loan from her credit union and paid it off over 24 months with $319.80 equal monthly payments based on a monthly compounding interest rate.
What nominal interest rate did Ashley get from her credit union?
What was the effective annual interest rate on this loan?
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