Interest compounded monthly on those monies

Assignment Help Financial Management

Reference no: EM132053334

Mr and Ms Houghton want to set up an account that will generate sufficient interest on retirement to generate $1200 to meet their basic living expenses.

A) find the future amount nessessary that will generate $1200 per month if they can get 5.15% interest compounded monthly on those monies.

B) find out he monthly payment they would have to make into an ordinary annuity to obtain the future value foo d in part a). If there annuity money earns 7.65% monthly compound interest and the term is 25 years.

Reference no: EM132053334

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