- Submit corrections for the midterm you want extra credited to Complete the retirement finances analysis given below Information relevant to these topics can be found in Section 6.7 of the book and Powerpoint 37. You may e an online calculator to do computations for the retirement finances part, but you still need to show how you arrived at your answer. 1. Fixed Contribution. If you contribute $250 per month to an Individual Retirement Account (RA) for 40 years at an interest rate of 8% per year compounded continuously, how much money will be in your IRA at retirement? 2. Increasing Contribution. Usually, contributions are a percentage of your salary, which increases over time. Consider a $250 per month contribution, increased by 5% per year for 40 years at the same 8% rate, compounded continuously. In this case, how much money will be in your IRA at retirement? Note: R(t) will no longer be constant in this case - it will depend on t. Your first step here is to figure out what R(t) is. Remember, to increase a number by 5%. you can multiply it by 1.05. 3. Making it last in retirement: Use your answer from question number 2 in this part. Let us sup pose that you invest this amount in a secure investment earning a fixed interest rate of 6% per year. compounded continuously. If you want your nest egg to last for exactly 25 years, then what constant monthly payment should you draw off? MacBook Air