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In: Finance

(1 point) Suppose that for retirement purposes, over the course of 23 years, you make monthly...

(1 point) Suppose that for retirement purposes, over the course of 23 years, you make monthly deposits of $240.00$240.00 into an ordinary annuity that pays an annual interest rate of 2.273%2.273% compounded monthly. After those 23 years, you then want to make monthly withdrawals for 27 years, reducing the balance in the account to zero dollars.

a) Find the amount of money you have accumulated in the annuity over the first 23 years:

b) How much should you withdrawing monthly from your account so that the balance reaches zero dollars after the final 27 years?

(Note: Your answers should have a dollar sign and be accurate to two decimal places)

Solutions

Expert Solution

ANS a : $86905.95

ANS b : $359.15

jeff jeffy answered 1 year ago
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