SOLUTION: a) Carter expects to live for 30 years more after his retirement. He would like to withdraw
$120,000 every year from his investment account (Account A) to pay for his living
exp
Algebra.Com
Question 1200836: a) Carter expects to live for 30 years more after his retirement. He would like to withdraw
$120,000 every year from his investment account (Account A) to pay for his living
expenses. Carter’s investment account (Account A) pays 5% interest per year.
How much money (a lump-sum) will Carter required to deposit in Account A at the beginning
of his retirement (at age 60) to pay for his living expenses if
(i) Account A start to pay interest one year after his retirement? (5 marks)
(ii) Account A start to pay interest on the day of his retirement? (5 marks)
[Hint: The total deposit that Carter made at the beginning of his retirement in Account A should
be the same as the amount required to provide for the monthly living expenses during his
retirement years.]
Found 2 solutions by ikleyn, Billy2002:
Answer by ikleyn(52792) (Show Source): You can put this solution on YOUR website!
.
As I see from this post /(and from a series of other posts), somebody wants to harness the tutors,
in order for they plow for him (or for her), performing his (or her) job.
It is a bad way to use the tutors' intellectual power.
We, the tutors, are here to teach you; not to perform your job.
Think about it.
Answer by Billy2002(1) (Show Source): You can put this solution on YOUR website!
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