Question
A person wants to establish an annuity for retirement. He wants to make quarterly deposits for 30 years so that he can then make quarterly
A person wants to establish an annuity for retirement. He wants to make quarterly deposits for 30 years so that he can then make quarterly withdraws of $12,500.00 for 10 years. The annuity earns 7.38 % compounded quarterly. (a) How much will have to be in the account at the time he retires? Value of account at retirement: [Note: Your answer is a dollar amount and should have a dollar sign and exactly two decimal places.] (b) How much should be deposited each quarter for 30 years in order to accumulate the required amount? quarterly deposit: [Note: Your answer is a dollar amount and should have a dollar sign and exactly two decimal places.] (c) What is the total amount of interest earned during the 40 -year period? Total Interest Earned: [Note: Your answer is a dollar amount and should have a dollar sign and exactly two decimal places.]
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