Saving for retirement by depositing

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Reference no: EM131841108

A person is saving for retirement by depositing $2,753 into an account at the end of each quarter for 28 years. The account earns a nominal annual rate of interest of 6.5% compounded quarterly. At the end of 28 years, the person retires. At the time they retire, they purchase an annuity that will provide monthly payments of size X, with the first payment due at the time they retire and purchase the annuity. The annuity makes payments for 20 years. The annuity earns a nominal annual rate of interest of 7.6% compounded monthly. Determine X. (round your answer to dollars and cents).

Reference no: EM131841108

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