You are saving for retirement and can currently afford to deposit $500 per month into your

retirement account. You anticipate you will be able to increase that amount by $300 to a total

monthly deposit of $800 in 15 years time. The account will make a rate of return of 10%,

compounded monthly and you expect to retire in 40 years? Once you retire, you will put the

money into a safer account that will earn 5%, compounded monthly and you expect to live for

20 years of retirement.

A. How much will you have when you retire?

A. If, when you retire, you live off of the interest forever, how much will you be able to

withdraw each month?

C. If, when you retire, you draw the balance down to zero over your expected 20 years of retirement, how much will you be able to withdraw each month?