F J K A B D E F G H You just turned 25 and started planning for your retirement. You have the following years 2 months) to retire and retirement spending goals: 3 4 Months until retirement: 504 5 Amount to withdraw each month: $ 8,300 6 Months to withdraw in retirement: 240 7 Interest rate (APR): 8 9 Because you are planning ahead, the first withdraw will not take place until 12 months after 10 you retire. You want to make equal monthly deposits into your account for your retirement 11 fund. 8% 12 13 If you start making deposits in one year and makes your last deposit on the day you retire, 14 a. what amount must you deposit monthly to be able to make the desired withdrawals during 15 retirement? 16 17 Answer for a: 18 19 If you start making deposits in five years and make your last deposit on the day you retire, 20 b. what amount must you deposit monthly to be able to make the desired withdrawals during retirement? 21 22 23 Answer for b: 24 25. You decide to start early by making first deposit in 6 months. Besides, according to its 401(k) plan, your employer is willing to match your contributions to your retirement savings. What amount must you deposit monthly now to be able to make the desired withdrawals at retirement? 26 27 28 Employer's monthly contribution: $ 100 29 30 31 32 33 34 35 Answer for c: F J K A B D E F G H You just turned 25 and started planning for your retirement. You have the following years 2 months) to retire and retirement spending goals: 3 4 Months until retirement: 504 5 Amount to withdraw each month: $ 8,300 6 Months to withdraw in retirement: 240 7 Interest rate (APR): 8 9 Because you are planning ahead, the first withdraw will not take place until 12 months after 10 you retire. You want to make equal monthly deposits into your account for your retirement 11 fund. 8% 12 13 If you start making deposits in one year and makes your last deposit on the day you retire, 14 a. what amount must you deposit monthly to be able to make the desired withdrawals during 15 retirement? 16 17 Answer for a: 18 19 If you start making deposits in five years and make your last deposit on the day you retire, 20 b. what amount must you deposit monthly to be able to make the desired withdrawals during retirement? 21 22 23 Answer for b: 24 25. You decide to start early by making first deposit in 6 months. Besides, according to its 401(k) plan, your employer is willing to match your contributions to your retirement savings. What amount must you deposit monthly now to be able to make the desired withdrawals at retirement? 26 27 28 Employer's monthly contribution: $ 100 29 30 31 32 33 34 35 Answer for c
