Question: 3. John calculated that he would need an additional $1,000 a month during his 25 years of retirement. His annuity pays 4.75% interest compounded monthly.

3. John calculated that he would need an additional $1,000 a month during his 25 years of retirement. His annuity pays 4.75% interest compounded monthly. What is the necessary present value he needs in his account the day he retires? 4. From problem 4, how much interest did John earn while he was drawing his retirement? 5. If John from problems 3&4 has 40 years before retirement, how much should he contribute monthly to his retirement to reach his goal calculated in problem 3 assuming the same 4.75% rate? 6. How much interest did John earn during his 40-year working life in problem 5? 7. How much total interest did John earn over the 65 years of his investment (combine problems 4 & 6)?

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