Suppose an investor makes 72 monthly payments of $750 each beginning today into an account that...

 

Transcribed Image Text:

Suppose an investor makes 72 monthly payments of $750 each beginning today into an account that will have a value of $85,000 at the end of six years. What is the stated annual interest rate? What is the effective annual rate (EAR) for this investment account? (Accurate to 2 decimal places, rounded up, use the % expression.) How much should an investor have in a retirement account on his 65th birthday if he wishes to withdraw $50,000 on that birthday and each of the following 14 birthdays, assuming his retirement account is expected to earn 7.5% annually? (Accurate to 2 decimal places, rounded up.) Suppose an investor makes 72 monthly payments of $750 each beginning today into an account that will have a value of $85,000 at the end of six years. What is the stated annual interest rate? What is the effective annual rate (EAR) for this investment account? (Accurate to 2 decimal places, rounded up, use the % expression.) How much should an investor have in a retirement account on his 65th birthday if he wishes to withdraw $50,000 on that birthday and each of the following 14 birthdays, assuming his retirement account is expected to earn 7.5% annually? (Accurate to 2 decimal places, rounded up.) Suppose an investor makes 72 monthly payments of $750 each beginning today into an account that will have a value of $85,000 at the end of six years. What is the stated annual interest rate? What is the effective annual rate (EAR) for this investment account? (Accurate to 2 decimal places, rounded up, use the % expression.) How much should an investor have in a retirement account on his 65th birthday if he wishes to withdraw $50,000 on that birthday and each of the following 14 birthdays, assuming his retirement account is expected to earn 7.5% annually? (Accurate to 2 decimal places, rounded up.) Suppose an investor makes 72 monthly payments of $750 each beginning today into an account that will have a value of $85,000 at the end of six years. What is the stated annual interest rate? What is the effective annual rate (EAR) for this investment account? (Accurate to 2 decimal places, rounded up, use the % expression.) How much should an investor have in a retirement account on his 65th birthday if he wishes to withdraw $50,000 on that birthday and each of the following 14 birthdays, assuming his retirement account is expected to earn 7.5% annually? (Accurate to 2 decimal places, rounded up.)

Answer rating: 100% (QA)

To calculate the stated annual interest rate and the effective annual rate EAR for the investment ac... View the full answer