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A) When you retire at age 65 you wish to pay yourself an annuity of $3000 a month for 25 years. If the interest rate
A) When you retire at age 65 you wish to pay yourself an annuity of $3000 a month for 25 years. If the interest rate you can get for such annuity is 3% compounded monthly, how much do you need to have in your account at age 65?
B) If you start saving for this annuity at age 25 with equal monthly payments, and you expect your investments to grow at 6% annually (compounded monthly), how much per month must you save?
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