Monica would like to receive $2,000 at the beginning of every month for 18 years after her retirement. If she retires 10 years from now and interest is 6.5% compounded monthly, how much money does she need to have when she retires?

Select one:

a. $255,648.65

b. $199,923.65

c. $262,217.90

d. $238,828.97

e. $223,758.79

The sum of $159,760 is invested at 5.5% compounded monthly for four years. After the four years, the balance in the fund is converted into an ordinary annuity paying $10,240 annually. If interest on the annuity is the same, what is the term of the annuity?

Select one:

a. 9.62 years

b. 13.49 years

c. 11.34 years

d. 10.21 years

e. 17.69 years