Question
At the age of 30, Alfred began investing $350.00 monthly into an investment account at an interest rate of 7.00%, compounded monthly. When he turned
At the age of 30, Alfred began investing $350.00 monthly into an investment account at an interest rate of 7.00%, compounded monthly. When he turned 45, the interest rate on this investment decreased to 5.00%, compounded monthly. Alfred plans to continue making monthly investments until he retires at 58. a) How much money will Alfred have in his account when he retires? Show your work. b) Alfreds sister, Marianne, retires at the age of 60. Her portfolio is valued at $200 000.00, earning 5.00%, compounded monthly. If Marianne wants the money to last until she is 85 years old, what is the maximum she can withdraw each month? Show your work.
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