Saving for your retirement by depositing a series

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Reference no: EM131307911

You begin saving for your retirement by depositing a series of $600 monthly payments over the next 30 years in the form of an annuity due. These deposit are into a mutual fund that is expected to earn 10% per year.

1) How much will you have in your retirement account the day you retire?

2) The day retire (30 years from today) you move your funds into a safe monet market account that pays 3.5%per year. One month after you retire you start withdrawing money as an ordinary annuity. If you withdrawal an equal annual amount every month for 40 years (assumes you live for 40 more years after you retire) until all the money is gone, what is the amount of this montly withdrawal?

Reference no: EM131307911

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