Question
After graduating from college with a bachelor of business administration, you begin an ambitious plan to retire in 25.00 years. To build up your retirement
After graduating from college with a bachelor of business administration, you begin an ambitious plan to retire in 25.00 years. To build up your retirement fund, you will make quarterly payments into a mutual fund that on average will pay 12.88% APR compounded quarterly. To get you started, a relative gives you a graduation gift of $3,853.00.
Once retired, you plan on moving your investment to a money market fund that will pay 4.20% APR with monthly compounding. As a young retiree, you believe you will live for 32.00 more years and will make monthly withdrawals of $10,564.00. (YOUR WITHDRAWALS ARE AT THE BEGINNING OF THE MONTH!!!!) To meet your retirement needs, what quarterly payment should you make?
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