document.write( "Question 1139382: Hi I have been trying and trying to find out this answer on my own and I just can't figure it out. Will someone help me solve this please? \r
\n" ); document.write( "\n" ); document.write( "You plan to work for 40 years and then retire using a 25-year annuity. You want to arrange a retirement income of $4400 per month. You have access to an account that pays an APR of 7.2% compounded monthly.\r
\n" ); document.write( "\n" ); document.write( "What size nest egg do you need to achieve the desired monthly yield? \n" ); document.write( "

Algebra.Com's Answer #759954 by MathTherapy(10556) $\"\"$ $\"About$

You can put this solution on YOUR website!
Hi I have been trying and trying to find out this answer on my own and I just can't figure it out. Will someone help me solve this please? \r
\n" ); document.write( "\n" ); document.write( "You plan to work for 40 years and then retire using a 25-year annuity. You want to arrange a retirement income of $4400 per month. You have access to an account that pays an APR of 7.2% compounded monthly.\r
\n" ); document.write( "\n" ); document.write( "What size nest egg do you need to achieve the desired monthly yield?
\n" ); document.write( "

If I understand this problem, you're looking for the amount you need to have in order to receive $4,400 per month for 25 years, and compounded at 7.2% each year.
\n" );
document.write( "If so, then IGNORE the other person's answer.\r
\n" );
document.write( "\n" );
document.write( "This works the same way as purchasing a property for a certain price and then making monthly payments. Therefore, you use the formula for the
\n" );
document.write( "present value of an ordinary annuity, or: , where: .
\n" );
document.write( "To realize your goal of receiving $4,400 per month for 25 years, @ an interest rate of 7.2% per annum, you need to acquire  by the time you're ready to retire. \n" );
document.write( "

\n" );