Question: A man plans to work for 25 years, during which time he will set up a retirement fund by making end of month payments of

A man plans to work for 25 years, during which time he will set up a retirement fund by making end of month payments of 100 per month. The fund earns interest at a nominal interest rate of 6% convertible monthly. He will use the accumulated funds to purchase a 20-year retirement annuity. Assuming he can get 6% converted monthly on the annuity, what will his month payments be?

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