You plan to work for 40 years and then retire using a 25-year annuity. You want to arrange a retirement income of $4000 per mont
h. You have access to an account that pays an APR of 6.0% compounded monthly. This requires a nest egg of $620,827.46.
What monthly deposits are required to achieve the desired monthly yield at retirement? (Round your answer to the nearest cent.)
What monthly deposits are required to achieve the desired monthly yield at retirement? (Round your answer to the nearest cent.)
1 answer:
Answer:
$311.74
Step-by-step explanation:
A financial calculator computes the payment amount to be $311.74.
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Your graphing calculator may have the capability to do this. Certainly, such calculators are available in spreadsheet programs and on the web.
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The appropriate formula is the one for the sum of terms of a geometric series.
Sn = a1·((1+r)^n -1)/(r) . . . . . where r is the monthly interest rate (0.005) and n is the number of payments (480). Filling in the given numbers, you have ...
$620827.46 = a1·(1.005^480 -1)/.005 = 1991.4907·a1
Then ...
$620827.46/1991.4907 = a1 ≈ $311.74
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Eighteen 2.5 gallon buckets are needed to fill a cistern with water.
To find:
The constant of variation.
Solution:
If y is directly proportional to x, then
Where, k is constant of variation.
In the given problem, water in cistern (w) is directly proportional to number of buckets (n).
(Capacity of each bucket is 2.5 gallons)
Therefore, the constant of variation is 2.5.
Answer:
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Step-by-step explanation:
