Question: This is Section 5.2 Problem 30: John is 28 years old and plans to retire at 67. He wants to have a fund at 67


This is Section 5.2 Problem 30: John is 28 years old and plans to retire at 67. He wants to have a fund at 67 that will let him spend $4,500 a month after retirement, and last for 45 years. Assume a continuous money flow Answer the following. Round your answers (at the last step) to integers. (a) Suppose that after his retirement John puts the money in a fund paying interest at an annual rate of 4.2%, compounded continuously. Then John will need $ 1091479 for his retirement. (b) Suppose that John starts to invest a fixed amount each month from now until he retires, in a fund that pays interest at an annual rate of 6.2%, compounded continuously. Then he should invest $551 each month. This is Section 5.2 Problem 30: John is 28 years old and plans to retire at 67. He wants to have a fund at 67 that will let him spend $4,500 a month after retirement, and last for 45 years. Assume a continuous money flow Answer the following. Round your answers (at the last step) to integers. (a) Suppose that after his retirement John puts the money in a fund paying interest at an annual rate of 4.2%, compounded continuously. Then John will need $ 1091479 for his retirement. (b) Suppose that John starts to invest a fixed amount each month from now until he retires, in a fund that pays interest at an annual rate of 6.2%, compounded continuously. Then he should invest $551 each month
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