Gary has just retired, and has 400000 dollars inhis retirement account. The account will earn interest at an annualrate of 10 percent, compounded monthly.

At the end of each month, Gary will withdraw a fixed amount tocover his living expenses.

Gary wants his savings to last exactly 20 years. How much moneycan he withdraw each month?

(Give your answer in dollars, correct to the nearest cent.)

monthly withdrawal:

PART TWO: What is the maximum amount that Gary can withdraweach month if he wants his savings to last indefinitely?

monthly withdrawal:

PART THREE: James wants to take out a loan. He can afford tomake monthly payments of 400 dollars and wants to pay the loan offafter exactly 20 years.

What is the maximum amount that James can afford to borrow ifthe bank charges interest at an annual rate of 5 percent,compounded monthly?

(Give your answer, in dollars, correct to the nearest dollar.)amount he can borrow:

Answer rating: 100% (QA)

PART ONE Gary has just retired and has 400000 dollars in his retirement account The account will earn interest at an annual rate of 10 percent compounded monthly At the end of each month Gary will wit... View the full answer