SOLUTION: Eugene began to save for his retirement at age 20, and for 10 years he put $ 550 per month into an ordinary annuity at an annual interest rate of 5% compounded monthly. After the 1
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-> SOLUTION: Eugene began to save for his retirement at age 20, and for 10 years he put $ 550 per month into an ordinary annuity at an annual interest rate of 5% compounded monthly. After the 1
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Question 1169703: Eugene began to save for his retirement at age 20, and for 10 years he put $ 550 per month into an ordinary annuity at an annual interest rate of 5% compounded monthly. After the 10 years, Eugene was unable to make the monthly contribution of $ 550, so he moved the money from the annuity into another account that earned 5% interest compounded monthly. He left the money in this account for 35 years until he was ready to retire. How much money did he have for retirement?
If Eugene had waited until he was 44 years old to start saving for retirement and then decided to put money into an ordinary annuity for 21 years earning 5% interest compounded monthly, what monthly payment would he have to make to accumulate the same amount for retirement as you found in the first part of the question?
