Shuggy Otis, an executive at Slapfish Corp. (SC) intends to retire in 11 years. SC just announced that it will start depositing $500.00 at the end of each quarter into each of its workers' retirement fund. The first deposit will occur one quarter from now; deposits for any worker will then continue until he or she retires. During the retirement phase of life, Shuggy would like to withdraw $5,600 per quarter (at the end of each quarter) from his retirement ac count for the following 19 years. Shuggy has $100,000 invested currently and can earn 4.8% APR with monthly com pounding, on all money invested (including that from Slapfish). 

How much must Shuggy put into the account at the end of each quarter for the next 11 years in order to retire and then make the 76 withdrawals as planned? (Just to be clear, the same interest rate applies across the entire 30year horizon)

Answer rating: 100% (QA)

To calculate how much Shuggy must put into the account at the end of each quarter for the next 11 years we can break down the problem into two parts t... View the full answer