HW$21$: Problem $4$

$(1$ point$)$

A person wants to establish an annuity for retirement. He wants to make monthly deposits for $30$ years so that he can then make monthly withdraws of $$4,600\mathrm{.}00$ for $10$ years. The annuity earns $7\mathrm{.}5\%$ compounded monthly.

$($a$)$ How much will have to be in the account at the time he retires?

Value of account at retirement: $

$($b$)$ How much should be deposited each month for $30$ years in order to accumulate the required amount?

Monthly deposit: $

$($c$)$ What is the total amount of interest earned during the $40-$year period?

Total Interest Earned: $