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You just celebrated your 40th birthday. You plan to retire when you turn 65. Today you...

You just celebrated your 40th birthday. You plan to retire when you turn 65. Today you have $105,736.62 accumulated in your retirement plan and plan to continue adding money each month to your retirement plan for exactly 25 years, starting one month from now. When you retire you will receive a $40,000 retirement bonus from your employer and will immediately deposit the money into your retirement plan. You will then use the accumulated funds to purchase an annuity that will pay you $5,800 per month for 10 years, with the first withdrawal starting one month after your 65th birthday. Assume the retirement plan and the annuity earn 5.10%/yr compounded monthly.

a. How much must you deposit each month?

Round to the nearest cent

b. How much interest will you earn?

Round to the nearest cent

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