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jeyben [28]
3 years ago
7

Suppose our retirement account pays 9% apr compounded monthly; what size nest egg do we need in order to retire with 25 years th

at yields to $5,000 per month? Show all work
Mathematics
1 answer:
Natalka [10]3 years ago
3 0

Answer:

  $595,808.11

Step-by-step explanation:

We assume the retirement account is intended to pay out $5000 per month for 25 years. The amortization formula can be used to find the required amount. The monthly payment A based on principal P with interest at annual rate r for t years satisfies the relation ...

  A = P(r/12)/(1 -(1 +r/12)^(-rt))

  P = A(12/r)(1 -(1 +r/12)^(-rt))

  P = 5000(12/0.09)(1 -(1 +.09/12)^-300)

  P = $595,808.11

The required nest egg is $595,808.11.

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1. Evaluate the expression if y = 5 and z = 0
natta225 [31]

Answer:

1. 0

2. -1

3. $120

4. $653.25

5. 4ab + 7a - 2b

Step-by-step explanation:

1. y = 5, z = 0

2z/y = ?

You'll need to substitute the values of y and z in the expression

2z/y

Becomes

2 * 0 / 5

= 0

So, 2z/y equals 0

......................................................................................................................

2. x = 0, y = -1 z = 7

xz - y²

Substituting the values of x, y and z in the above algebraic expression

xz - y²

Becomes

0*7 - (-1²)

0 - 1

-1

So, xz - y² equals -1

......................................................................................................................

3. The question falls under SIMPLE INTEREST

The formula is

I = (PRT)/100

Where I represents Interest

P = Principal (Amount Invested)

R = Rate of Interest

T = Time (in years)

From the question,

The interest is unknown ----------------- (To be calculated)

P equals $600

R = 2%

T = 10 years

Substitute these values in the formula above

I = (PRT)/100

Becomes

I = (600 * 2 * 10) / 100

I = 12000/100

I = 120

Result: The interest is $120

......................................................................................................................

4.

The formula is

I = (PRT)/100

Where I represents Interest

P = Principal (Amount Invested)

R = Rate of Interest

T = Time (in years)

From the question,

The interest is unknown ----------------- (To be calculated)

P equals $13000

R = 6.7%

T = 9 months

Remember that time has to be in years

So, 9 months must be converted to year(s)

If 12 months makes a years

Then 9 months would be 9/12 years

So, T = 9/12 years

T = 0.75 years

Substitute these values in the formula above

I = (PRT)/100

I = (13000 * 6.7 * 0.75) / 100

I = 65325/100

I = 653.25

Result: The interest is $653.25

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4ab + 7a - 2b + 3bc - 3bc

4ab + 7a - 2b

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