You are planning for your retirement and have decided the following: you will retire in 42 years and will make monthly deposits into your retirement account of $250 for the next 15 years and then monthly deposits of $800 for the remaining 27 years until retirement. This account earns a 9% rate of return, compounded monthly. In addition, you will inherit $50,000 20 years from today. The inheritance will be deposited into the same account as your monthly deposits. You expect to live 30 years past retirement and wish to make equal monthly withdrawals from your account. How much will you have when you retire? How much will you be able to withdraw each month if the account that holds your retirement money makes a 4% return, compounded monthly?

thats all the info i was given to work with

  

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You are planning for your retirement and have decided the following: you will retire in 42 years and will make monthly deposits into your retirement account of $250 for the next 15 years and then monthly deposits of $800 for the remaining 27 years until retirement. This account earns a 9% rate of return, compounded monthly. In addition, you will inherit $50,000 20 years from today. The inheritance will be deposited into the same account as your monthly deposits. You expect to live 30 years past retirement and wish to make equal monthly withdrawals from your account. How much will you have when you retire? How much will you be able to withdraw each month if the account that holds your retirement money makes a 4% return, compounded monthly? You are planning for your retirement and have decided the following: you will retire in 42 years and will make monthly deposits into your retirement account of $250 for the next 15 years and then monthly deposits of $800 for the remaining 27 years until retirement. This account earns a 9% rate of return, compounded monthly. In addition, you will inherit $50,000 20 years from today. The inheritance will be deposited into the same account as your monthly deposits. You expect to live 30 years past retirement and wish to make equal monthly withdrawals from your account. How much will you have when you retire? How much will you be able to withdraw each month if the account that holds your retirement money makes a 4% return, compounded monthly?

Answer rating: 100% (QA)

SOLUTION To calculate how much you will have when you retire we can use the future value formula for ... View the full answer