Question
After graduating from college with a bachelor of business administrationyou begin an ambitious plan to retire in 24.00 years. To build up your retirement fund,
After graduating from college with a bachelor of business administrationyou begin an ambitious plan to retire in 24.00 years. To build up your retirement fund, you will make quarterly payments into a mutual fund that on average will pay 11.88% APR compounded quarterly. To get you started a relative gives you a graduation gift of 2,199.00. Once retired, you plan on moving your investment to a money market fund that will pay 4.92% APR with monthly compounding. As a young retiree you believe you live for 33.00 more years and will make monthly withdrawals of $9,855.00. (YOUR WITHDRAWALS ARE AT THE BEGINNING OF THE MONTH!!) To meet your retirement needs , what quarterly payment should you make?
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