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Sigmund is now 25 and working. He plans to take a year off when he is...

Sigmund is now 25 and working. He plans to take a year off when he is 35 and to travel during that year. He wants to be able to withdraw $2000 per month from his savings account during that year. Assume the savings account interest rate is 4% during the year in which Sigmund is travelling.

1. What is the interest rate per payment period (r)

2. What is the total number of payments (n) during the year that Sigmund is travelling?

3. Assuming the amount left in the account at the end of the year in which Sigmund is travelling will be 0, what amount must Sigmund accumulate in the account by the beginning of that year?

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