(a) How much will have to be in the account at the time he retires? Value of account at retirement: $ (b) How much should be deposited each quarter for 35 years in order to accumulate the required amount? Quarterly deposit: $ c) What is the total amount of interest earned during the 50-year period? Total Interest Earned: $

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 24P
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A person wants to establish an annuity for retirement. He wants to make quarterly
deposits for 35 years so that he can then make quarterly withdraws of
$11,000.00 for 15 years. The annuity earns 6.82% compounded quarterly.
(a) How much will have to be in the account at the time he retires?
Value of account at retirement: $
(b) How much should be deposited each quarter for 35 years in order to
accumulate the required amount?
Quarterly deposit: $
(c) What is the total amount of interest earned during the 50-year period?
Total Interest Earned: $
Transcribed Image Text:A person wants to establish an annuity for retirement. He wants to make quarterly deposits for 35 years so that he can then make quarterly withdraws of $11,000.00 for 15 years. The annuity earns 6.82% compounded quarterly. (a) How much will have to be in the account at the time he retires? Value of account at retirement: $ (b) How much should be deposited each quarter for 35 years in order to accumulate the required amount? Quarterly deposit: $ (c) What is the total amount of interest earned during the 50-year period? Total Interest Earned: $
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