Suppose you are 30 years old and would like to retire at age 65. Furthermore, you would like to have a retirement fund from which you can draw an income of $100,000 per year-forever! How much would you need to deposit each month to do this? Assume a constant APR of 6% and that the compounding and payment periods are the same. To draw $100,000 per year, there must be $☐ in your savings account when you retire. (Do not round until the final answer. Then round to the nearest integer as needed.)

Suppose you are 30 years old and would like to retire at age 65. Furthermore, you would like to have a retirement fund from which you can draw an income of $100,000 per year-forever! How much would you need to deposit each month to do this? Assume a constant APR of 6% and that the compounding and payment periods are the same. To draw $100,000 per year, there must be $☐ in your savings account when you retire. (Do not round until the final answer. Then round to the nearest integer as needed.)

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 44P

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