Question: Your math professor has decided to retire and return to his jetsetting life style. He wishes to establish a fund from which he can

Your math professor has decided to retire and return to his jetsetting life style. He wishes to establish a fund from which he can withdraw $5,000 per month for the next 30 years. If the fund earns 8% per year compounded continuously, how much money does he need now to establish the fund? Exact value = 60000 0.08 (2.4-1) dollars x Rounded to the nearest cent = 7517382.29 x dollars

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Mathematics Questions!

Presented below is the condensed balance sheet of the partnership of Rina, Rolan and Roxy who share in the profits and losses in the ratio of 6:3:1, respectively:

Your mother just received a $250,000 inheritance. If she invests her money in a diversified equity portfolio returning 8 percent per year, approximately how long will it take her to become a...

Bankrate.com reported on a shocking statistic: only 54% of workers participate in their company's retirement plan. This means that 46% do not. With such an uncertain future for Social Security, this...

Your math professor has decided to retire and return to his jetsetting life style. He wishes to establish a fund from which he can withdraw $6,000 per month for the next 30 years. If the fund earns...

-15 Which one of the following Riemann Sums approximates e" da using 4 subintervals of equal length where the representative points are chosen to be the right endpoint of each subinterval. 6+9+12+15...

D Question 16 5 pts Your math professor has decided to retire and return to his jetsetting life style. He wishes to establish a fund from which he can withdraw 4,000 dollars per month for the next 40...

6. [0/1 Points] DETAILS PREVIOUS ANSWERS MY NOTES Math 110 Course Resources - Applications of Definite Integrals Course Packet on income streams and annuities A math tee shirt business is expected to...

[-/1 Points] DETAILS MY NOTES Math 110 Course Resources - Applications of Definite Integrals Course Packet on income streams and annuities Suppose you plan to have $50,000 in 20 years from now and...

MY NOTES Your math professor has decided to retire and return to his jetsetting life style. He wishes to establish a fund from which he can withdraw $4,000 per month for the next 30 years. If the...

A student has prepared a cobalt complex that has one of the following three structures: [Co(NH3)6]Cl3, [Co(NH3)5Cl]Cl2, or [Co(NH3)4Cl2]Cl. Explain how the student would distinguish between these...

Consider the swap in Example 22.2. Now, assume that the payments are made every six months. Zero- coupon bond prices (maturing every six months) are given in the following table: Compute the value of...

Evaluate the limit using the Basic Limit Laws and the limits lim x x x 2 4 = c 2 4 and lim x c k = k . ( Use symbolic notation and fractions where needed. ) lim x - 2 ( 2 x 4 - 3 x 3 5 x ) =

For this assignment you will draw a Venn Diagram with three circles, one for each of the creation myths of this section- Out of the Blue, Genesis, and Popul Vu. You should compare and contrast them...

One of the shops in hackerMall is offering discount coupons based on a puzzling porblem. There are n tags, where each tag has a value denoted by val [ [ i ] . ] . A customer needs to choose teh tags...

You have been hired by Agirich Appraisal. Your next assignment is to provide the indicated value for a subject property using the cost approach. Be sure to adjust for land classification, financing...

Bob and Susan Menzel are planning to open a food service operation and have heard about operating leverage. They are forecasting annual sales and depreciation expenses as follows: Annual sales Food...

Calls for WI and IL both arrive at the Log call process in two separate streams as follows: WI calls: Arrive in a defined daily pattern of 20 calls per hour during the 8 hour period on Monday between...

A shaft carries five masses A, B, C, D and E which revolve at the same radius in planes which are equidistant from one another. The magnitude of the masses in planes A, C and D are 50 kg, 40 kg and...

On one of my first dates with my wife, we went to see the movie Space balls and paid $5 per ticket. A: Halfway through the movie, my wife said: What on earth were you thinking? This movie sucks! I...

The following is intended to explore what kinds of income-demand relationships are logically possible. A: For each of the following, indicate whether the relationship is possible or not and explain:...

Suppose I run a fast-food restaurant and I know my customers come in on a limited budget. Almost everyone that comes in for lunch buys a soft-drink. Now suppose it costs me virtually nothing to serve...

Find the least-squares prediction line for the calculus grade data in Table 12.1. Table 12.1 Mathematics Achievement Test Scores and Final Calculus Grades for College Freshmen Mathematics Achievement...

18. A population consists of N 55 numbers: 1, 3, 5, 6, and 7. It can be shown that the mean and standard deviation for this population are m 54.4 and s 52.15, respectively. a. Construct a probability...

Graph the line corresponding to the equation by graphing the points corresponding to x=0, 1, and 2. Give the y-intercept and slope for the line. |1. y=2x+1