A loan of $60,000 is due 10 years from today. The borrower wants to make annual payments at the end of each year into a sinking fund that will earn interest at an annual rate of 8 percent. a. What will the annual payments have to be? b. Suppose the payments are made on a monthly basis and compounded likewise. What will the 8. payments be? Suppose you make monthly payments of $50 into an investment account for retirement that yields 12% interest compounded monthly over the next forty years? Assuming you retire in forty years, how much will you have in your account? What if you invest $100 monthly instead? What is your total cash investment for each? Suppose you want save $6,000,000 for retirement. You plan to make monthly payments for the next forty years into an investment account that yields 15%, compounded monthly. a. How much should you set aside each month? b. Suppose you contribute $300 for thirty years and retire early. At retirement, you begin drawing down the 9. 10. account balance to 25% of its value over the following 30 years by receiving monthly payments. The account balance continues to accrue interest at 10% compounded monthly. How much will you receive each month