SOLUTION: Find the amount necessary to fund the given withdrawals. Monthly withdrawals of ​$650 for 8 years; interest rate is 5.1 % compounded monthly. The amount necessary to fund

Algebra ->  Finance -> SOLUTION: Find the amount necessary to fund the given withdrawals. Monthly withdrawals of ​$650 for 8 years; interest rate is 5.1 % compounded monthly. The amount necessary to fund      Log On


   

Question 1118830: Find the amount necessary to fund the given withdrawals.
Monthly withdrawals of ​$650 for 8 years; interest rate is 5.1 % compounded monthly.
The amount necessary to fund the given withdrawals is ​
Answer by Theo(13342) About Me  (Show Source):
You can put this solution on YOUR website!
you would require 51,150.55924 to fund those withdrawals.

your monthly cash flow would look like this.

TTT

%%%

only the starting and ending months are shown.

to calculate the present value, i used the TI-BA-II financial calculator.

my inputs were:

present value = 0
monthly payment = 650.
percent interest rate per month = 5.1 / 12 = .425
number of months = 8 * 12 = 96
payments are made at the end of each month.
future value = 0

i then had the calculator give me the present value, which was 51,150.55924.