Question
Nina has just started saving for retirement. She wants to be able to withdraw $7,000 a month for 15 years after retirement. (The first withdrawal
Nina has just started saving for retirement. She wants to be able to withdraw $7,000 a month for 15 years after retirement. (The first withdrawal will come one month after she retires). Nina has found the perfect retirement account that will provide her 3% interest compounded monthly. A. How much money should Nina have in her retirement account at retirement to be able to make these withdrawals of $7,000 a month all through her retirement? B. If Nina wants to make monthly deposits into her retirement account, starting next month and continuing for the next 10 years until she retires, what should her monthly deposit be in order to have enough money at retirement?
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