Question
For this problem, you will be looking at how the length of time invested and size of deposits made affect each other when saving towards
For this problem, you will be looking at how the length of time invested and size of deposits made affect each other when saving towards a set goal with an annuity. 2. Emery's bank offers a retirement annuity that earns 4% APR, compounded monthly. Emery wants to have at least $200,000 in the account when they retire. For each retirement plan described, determine: Emery monthly deposit, the total length of time they need to invest, the actual amount in their account at the end of the investing time, the total amount of money they invested, and the total amount of interest they earned. For the monthly deposit amount, round up to the cent. For the amount of time spent investing, express your answer in years and months; for example, 1.25 years should be expressed as 1 year, 3 months. For the ending amount in the account, round down to the cent.
a. Plan A: Emery will be able to retire after 30 years.
b. Plan B: Emery will be able to retire after 20 years.
c. Plan C: Emery will deposit $200 per month.
d. Plan D: Emery will deposit $100 per month.
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