Asked by Judy
Mrs. Hart, at age 65, can expect to live for 25 years. If she can invest at 5% per annum compounded monthly, how much does she need now to guarantee herself $900 every month for the next 25 years?
math - Reiny, Friday, April 3, 2015 at 3:05pm
Present Value
= 900(1 - 1.0041666..)^-300)/.0041666...
= $153,954.05
math - Judy, Friday, April 3, 2015 at 3:33pm
Reiny, 153,954.05 is coming up wrong. any suggestions?
math - Reiny, Friday, April 3, 2015 at 3:05pm
Present Value
= 900(1 - 1.0041666..)^-300)/.0041666...
= $153,954.05
math - Judy, Friday, April 3, 2015 at 3:33pm
Reiny, 153,954.05 is coming up wrong. any suggestions?
Answers
Answered by
bobpursley
900 dollars every Month...
do you need to divide the 153,954 by the number of months in 25 years?
do you need to divide the 153,954 by the number of months in 25 years?
Answered by
Judy
I am not sure what happened but I got the answer .. 153,954 is correct. thanks for the help.
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