A retired couple plans to supplement their retirement income with monthly withdrawals of the interest earned on a retirement account which has a balance of $200,000. a. If the fund earns interest monthly at an APR of 6%, which the couple always withdraws from the account, how much is generated in interest each month? Round/take your answer to the nearest cent. Recall that APR stands for Annual Percentage Rate. %24 b. Estimate (to the nearest tenth of a percent) the annual interest rate needed for this couple to be able to earn $1,350 per month in interest from this $200,000 account. Round your answer to the nearest tenth of a percent, eg., 2.5%.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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A retired couple plans to supplement their retirement income with
monthly withdrawals of the interest earned on a retirement account
which has a balance of $200,000.
a. If the fund earns interest monthly at an APR of 6%, which the couple
always withdraws from the account, how much is generated in interest
each month?
Round/take your answer to the nearest cent. Recall that APR stands for
Annual Percentage Rate.
24
b. Estimate (to the nearest tenth of a percent) the annual interest rate
needed for this couple to be able to earn $1,350 per month in interest
from this $200,000 account.
Round your answer to the nearest tenth of a percent, eg., 2.5%.
Transcribed Image Text:A retired couple plans to supplement their retirement income with monthly withdrawals of the interest earned on a retirement account which has a balance of $200,000. a. If the fund earns interest monthly at an APR of 6%, which the couple always withdraws from the account, how much is generated in interest each month? Round/take your answer to the nearest cent. Recall that APR stands for Annual Percentage Rate. 24 b. Estimate (to the nearest tenth of a percent) the annual interest rate needed for this couple to be able to earn $1,350 per month in interest from this $200,000 account. Round your answer to the nearest tenth of a percent, eg., 2.5%.
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