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A man turns 50 today and wishes to provide supplemental retirement income of 3000 at the beginning of each month for life starting on his
A man turns 50 today and wishes to provide supplemental retirement income of 3000 at the beginning of each month for life starting on his 65th birthday. Starting today, he makes monthly contributions of X to a fund for 15 years. The fund earns a nominal rate of 8% compounded monthly. On his 65th birthday, each 1000 of the fund will provide 9.2 of income at the beginning of each month starting immediately and continuing as long as he survives.(see below for an explanation of this statement) NOTE: A life annuity is a product sold by life insurance companies. What the statement means is this: If the man pays the insurance company $1,000 on his 65th birthday, the company will guarantee to pay him $9.2 at the beginning of each month for as long as he lives. HINT: In this problem, the man wants to receive $3000 per month for life starting at age 65. If $1,000 would guarantee $9.2 per month, how much does he have to pay the company to guarantee $3000 per month? Calculate X. Round your answer to the nearest integer
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