Question
Professor Brain is going to work for the next 25 years and then retire. At the end of the 25th year he would like to
Professor Brain is going to work for the next 25 years and then retire. At the end of the 25th year he would like to withdraw $80,000 per year from an investment account until the end of the 50th year (26 withdrawals). At the end of the 51st year he would like to have $100,000 to leave to his heirs. He currently has $60,000 to start the investment account. The investment account pays 8% with monthly compounding. Brain would like to know how much he should invest in the account each month with the first payment to be made in 1 month and continuing until he retires at the end of the 25th year. Please help Professor Brain determine what his monthly payment needs to be.
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