# Math

Jim Hunter decided to retire to Florida in 10 years. What amount should Jim invest today so that he will be able to withdraw \$25,000 at the end of each year for 30 years after he retires. Assume he can invest money at 9% interest compounded annually. (Using the Tables)

1. 👍 0
2. 👎 0
3. 👁 808
1. Pt = \$25000/yr * 30rs = \$750,000 = Amt.
in the account after 10 yrs.

Pt = Po(1+r)^n.

r = 9%/100% = 0.09 = APR expressed as a decimal.

n=1 comp./yr * 10yrs = 10 Compounding periods.

Po(1.09)^10 = 750,000.
Po = 750000 / (1.09)^10 = \$316,808.11.
= Initial deposit.

1. 👍 0
2. 👎 2
2. 50,000

1. 👍 0
2. 👎 1
3. A2=25000[1 - (1.09)^-30]/0.09= \$256,841.35
256,841.35=A1(1.09)^10; A1= \$108,492.56

1. 👍 1
2. 👎 1

## Similar Questions

1. ### math

jim began a 92​-mile bicycle trip to build up stamina for a triathlon competition.​ Unfortunately, his bicycle chain​ broke, so he finished the trip walking. The whole trip took 4 hours. If Jim walks at a rate of 3 miles per

Bob has a brother, Jim, who has a daughter named Bertha. Bertha's daughter, Jennifer, has a sister named Penny. Which of the following indicated the relationship between Jim and Penny? a. Jim is Penny's father b. Jim is Penny's

3. ### English-Grammar

When would you use: Jim and I or Jim and me? Can you give me some examples...and maybe a website. Thank you.

4. ### Statistics

Jim's systolic blood pressure is a random variable with a mean of 145 mmHg and a standard deviation of 20 mmHg. For Jim's age group, 140 is the cutoff for high blood pressure. If Jim's systolic blood pressure is taken at a

1. ### math

You are the financial planner for Johnson Controls. Assume last year’s profits were \$760,000. The board of directors decided to forgo dividends to stockholders and retire high-interest outstanding bonds that were issued 5 years

2. ### Math

The ratio of Jim's money to Peters money was 4:7 at first. After peter gave 3/14 of his money to jim, they have equal amounts of money. How much money did jim have at first?

3. ### mathematics

Janet Woo decided to retire to Florida in 7 years. What amount should Janet invest today so she can withdraw \$53,500 at the end of each year for 20 years after she retires? Assume Janet can invest money at 7% compounded annually.

4. ### Economics

Jim buys only milk and cookies. a. In year 1, Jim earns \$100, milk costs \$2 per quart, and cookies cost \$4 per dozen. Draw Jim's budget constraint.

1. ### english

How does the circumstantial struggle in O. Henry’s “The Gift of the Magi” add to the situational irony in the story? a. Jim and Della's lack of money is magnified when they sell their priceless possessions for gifts that