Question

Congratulations, you have saved well and are ready to begin your retirement. If you have $1,750,000.00 saved for your retirement and want it to last for 40 years, and will earn 10.8% compounded monthly: What is the amount of the monthly distribuion? 216.50 How much interest is earned in retirement?

58

likes
290 views

Answer to a math question Congratulations, you have saved well and are ready to begin your retirement. If you have $1,750,000.00 saved for your retirement and want it to last for 40 years, and will earn 10.8% compounded monthly: What is the amount of the monthly distribuion? 216.50 How much interest is earned in retirement?

Expert avatar
Jayne
4.4
64 Answers
Convert Annual interest to monthly interest rate Monthly interest rate= 10.8/12=0.9 Calculate the number of monthly payments Total number of monthly payments= 40*12= 480 Calculate Monthly Distribution PMT=P*r/(1-(1+r)^-n) where p= initial savings r= monthly interest rate n= number of payments PMT=1750000*0.009/(1-(1+0.009)^-480 PMT= 15600.92 Interest Earned = Total Amount Paid- Initial Savings Total Amount Paid= PMT*Number of Payments Total Amount Paid= 15600.92*480=7489767.51 Interest Earned = 7489767.51 - 1750000=5739767.51 Therefore, A) Amount of monthly distribution= $15600.92 B)Interest Earned= $5739767.51

Frequently asked questions (FAQs)
What is the equation of a hyperbola with center (2, -3), horizontal transverse axis of length 8, and eccentricity 2.5?
+
Math question: What is the limit as x approaches 2 of (x^2-4)/(x-2)?
+
What is the volume of a rectangular prism with length 8cm, width 5cm, and height 12cm?
+
New questions in Mathematics
The sum of an infinite geometric series is 13,5 The sum of the same series, calculated from the third term is 1,5. Q. Calculate r if r>0.
Consider the relation R defined on the set of positive integers as (x,y) ∈ R if x divides y. Choose all the true statements. R is reflexive. R is symmetric. R is antisymmetric. R is transitive. R is a partial order. R is a total order. R is an equivalence relation.
Use the elimination to find the solution to each linear system. X+y=43 2x-y=20
A company is wondering whether to invest £18,000 in a project which would make extra profits of £10,009 in the first year, £8,000 in the second year and £6,000 in the third year. It’s cost of capital is 10% (in other words, it would require a return of at least 10% on its investment). You are required to evaluate the project.
(6.2x10^3)(3x10^-6)
Determine the absolute extrema of the function 𝑓(𝑥)=𝑥3−18𝑥2 96𝑥 , on the interval [1,10]
Find the root of x^4-10x^ 5=0 using Newton's method, with a precision of the smallest positive root.
You are planning to buy a car worth $20,000. Which of the two deals described below would you choose, both with a 48-month term? (NB: estimate the monthly payment of each offer). i) the dealer offers to take 10% off the price, then lend you the balance at an annual percentage rate (APR) of 9%, monthly compounding. ii) the dealer offers to lend you $20,000 (i.e., no discount) at an APR of 3%, monthly compounding.
2x2 and how much?
A person borrows rm 1000 from a bank at an interest rate of 10%. After some time, he pays the bank rm 1900 as full and final settlement of the loan. Estimate the duration of his loan.
4x/2+5x-3/6=7/8-1/4-x
The cost of unleaded gasoline in the Bay Area once followed an unknown distribution with a mean of $4.59 and a standard deviation of $0.10. Sixteen gas stations from the Bay Area are randomly chosen. We are interested in the average cost of gasoline for the 16 gas stations. 84. Find the probability that the average price for 30 gas stations is less than $4.55. a 0.6554 b 0.3446 c 0.0142 d 0.9858 e 0
Find all real numbers x that satisfy the equation \sqrt{x^2-2}=\sqrt{3-x}
Fill in the P(X-x) values to give a legitimate probability distribution for the discrete random variable X, whose possible values are -5 ,3 , 4, 5 , and 6.
In poker, a full house consists of five cards, where two of the cards have the same number (or letter) and the remaining three also have the same number (or letter) as each other (but not as the previous two cards). Use a search engine or Wikipedia to understand the concept better if necessary. In how many different ways can one obtain a full house?
The area bounded by the curve y=ln(x) and the lines x=1 and x=4 above the x−axis is
Below are three 95% CIs (where 𝜎 was known and 𝑥̅happened to be the same); one with sample size 30, one with samplesize 40, and one with sample size 50. Which is which?(66.2, 76.2)(61.2, 81.2)(56.2, 86.2)
a) 6x − 5 > x + 20
7-1=6 6x2=12 Explain that
If the area of a circle is 75.7ft2, what is the radius? Give the answer in metres. Round answer to 2 decimal places and enter the units.