Suppose you are 30 years old and would like to retire at 60. Moreover, you would like to to have a retirement fund of $250,000. Assuming a constant APR of 6% compounded daily. If you use the $250,000 to purchase an annuity that makes monthly payments of a period of 30 years, how large will those payments be?

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Amortized Loans

The term "amortization" refers to spreading the value of a loan or a debt over a series of regular payments or installments comprising of both the principal and interest amount. It generally involves the process where in the value of a loan or an intangible asset is written down over its maturity period.