Question

. You deposit $500 per month at the end of each month for the next 25...

. You deposit $500 per month at the end of each month for the next 25 years into an account that pays 4% interest. How much could you withdraw at the end of each month for the next 20 years? You save for 25 and withdraw for 20 years.

thorough explanation, please.

Homework Answers

Answer #1

Withdrawal at the end of each month 1557.76

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
You deposit $4,000 per year at the end of each of the next 25 years into...
You deposit $4,000 per year at the end of each of the next 25 years into an account that pays 8% compounded annually. How much could you withdraw at the end of each year of the next 20 years? The first withdrawal is made at the end of the first year in the 20-year period. So you save for 25 years and withdraw for 20 years. ***Please use financial calculator and write down the steps to get the answer***
You deposit $2,500 per year at the beginning of each of the next 30 years into...
You deposit $2,500 per year at the beginning of each of the next 30 years into an account that pays 6% compounded annually. How much could you withdraw at the end of each of the 20 years following your last deposit if all withdrawals are the same dollar amount? (The 30th and last deposit is made at the beginning of the 20-year period. The first withdrawal is made at the begining of the first year in the 20-year period.)
1) Lauren plans to deposit $200 per month into an account at the end of each...
1) Lauren plans to deposit $200 per month into an account at the end of each month for the next 15 years. If her back pays interest at the rate of 2.5% per year compounded monthly, how much will Lauren have in her account at the end of 15 years? 2) Jim makes monthly payments of $800 into a retirement account for ten years. If the account pays 8% compounded monthly, how much will be in the account at the...
For 20 years Jenny deposits $500 at the end of each month in an account earning...
For 20 years Jenny deposits $500 at the end of each month in an account earning 4.5% per year compounded monthly. How much will she have in the account in 20 years? How much interest did she earn in this 20 year period? for the next 25 years Jenny neither deposits nor withdraws any money while the account continues to earn 4.5% per year compounded monthly. How much does Jenny have in the account after these 25 years? How much...
1) You deposit $500 each month into an account earning 3% interest compounded monthly. a) How...
1) You deposit $500 each month into an account earning 3% interest compounded monthly. a) How much will you have in the account in 25 years? b) How much total money will you put into the account? c) How much total interest will you earn? 2) Suppose you invest $190 a month for 6 years into an account earning 7% compounded monthly. After 6 years, you leave the money, without making additional deposits, in the account for another 21 years....
You deposit $1000 at the end of each month in an account that pays a 3%...
You deposit $1000 at the end of each month in an account that pays a 3% interest rate compounded monthly. 1. How much will be in the account after 10 years? 2. What was your total contributions? 3. How much interest did you earn? Please print clearly. thanks!
You are planning to save for retirement over the next 25 years. To do this, you...
You are planning to save for retirement over the next 25 years. To do this, you will invest $500 per month in a retirement account. The rate of return for the retirement account is expected to be 9 percent per year. After you retire, you expect that the account will have an annual return of 6 percent. How much can you withdraw each month from your account assuming a 20-year withdrawal period during retirement?
Lauren plans to deposit $9000 into a bank account at the beginning of next month and...
Lauren plans to deposit $9000 into a bank account at the beginning of next month and $150/month into the same account at the end of that month and at the end of each subsequent month for the next 4 years. If her bank pays interest at a rate of 5%/year compounded monthly, how much will Lauren have in her account at the end of 4 years? (Assume she makes no withdrawals during the 4-year period. Round your answer to the...
You deposit $5000 in a credit union at the end of each year for 10 years....
You deposit $5000 in a credit union at the end of each year for 10 years. The credit union pays 6% compound interest. Immediately after the tenth deposit, how much can withdraw from her account?
You deposit $500 each month into an account earning 4% interest compounded monthly. How much will...
You deposit $500 each month into an account earning 4% interest compounded monthly. How much will you have in the account in 30 years? How much total money will you put into the account? How much total intrest will you earn?