Wednesday
September 17, 2014

Homework Help: Finance (Engineering Economics)

Posted by Chase on Wednesday, April 4, 2012 at 11:06am.

You wish to retire at 60 and, at the end of each month thereafter for 25 years, to receive $6,000. Assume that you begin making monthly payments into an account at age 23 and continue these payments until age 60. If the annual interest rate is constant at 12 percent, how much must be deposited monthly between ages 23 and 60 for you to receive your $6,000/month for 25 years? Assume monthly compounding throughout.

I am having difficulty with this problem because once you reach the age of 60, the sum of money you have saved between 23 and 60 (whatever amount that is) keeps accruing interest (at 1 % percent a month) while you you withdraw $6000 a month. I don't know how to find the sum of money you need to save between 23 and 60.

Answer this Question

First Name:
School Subject:
Answer:

Related Questions

FINANCE - you want to retire in 30 years. You intend to invest $200 per month ...
MBA Finance - Sally has won the grand prize in a lottery and must choose between...
Finance - You are now 30 years old. You plan to retire in 30 years, and expect ...
finance - You wish to retire in 12 years and currently have $50,000 in a savings...
Finance - You wish to retire in 12 years and currently have $50,000 in a savings...
math - Jeanette wishes to retire in 30 years at age 55 with retirement savings ...
Finance - An annuity is developed and used based on the concept of time value of...
finance - "You are told you will receive the following cash payments at the end ...
Math - If you finance $50,000 of the purchase of your new home at 4.40% ...
Finance - The prince Albert Corporation has forecasted the following sales for ...

Search
Members