Question
A person wants to establish an annuity for retirement purposes. He wants to make quarterly deposits for 20 years so that he can then make quarterly withdrawals of $5,000 for 10 years. The annuity earns 7.32% interest compounded quarterly.
A. How much will have to be in the account at the time he retires?
B. how much should be deposited each quarter for 20 years in order to accumulate the required amount?
C. What is the total amount of interest earned during the 30-year period?
A. How much will have to be in the account at the time he retires?
B. how much should be deposited each quarter for 20 years in order to accumulate the required amount?
C. What is the total amount of interest earned during the 30-year period?