Reference no: EM13727153
1. You want to receive 5,000 per month in retirement. If you can earn 0.75% per month and you expect to need the income for 25 years, how much do you need to have in your account at retirement?
2. You want to receive $5,000 per month for the next 5 years. How much would you need to deposit today if you can earn 0.75% per month?
3. What monthly rate would you need to earn if you only have $200,000 to deposit?
(FOR EXTRA CREDIT – please answer a. and b.):
Suppose you have $200,000 to deposit and can earn 0.75% per month.
a. How many months could you receive the $5,000 payment?
b. How much could you receive every month for 5 years?
4. You want to have $1 million to use for retirement in 35 years. If you can earn 1% per month, how much do you need to deposit on a monthly basis if the first payment is made in one month? What if the first payment is made today?
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How much do you need to have in your account at retirement
: You want to receive 5,000 per month in retirement. If you can earn 0.75% per month and you expect to need the income for 25 years, how much do you need to have in your account at retirement? You want to receive $5,000 per month for the next 5 years. ..
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