Which of the following is the same as 2.3 × 10^3?
1 answer:
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Answer:
The amount needed such that when it comes time for retirement is $396721.78.
Step-by-step explanation:
Given : An individual can make monthly withdraws in the amount of $2,154 for 30 years from an account paying 5.1% compounded monthly.
To find : The amount needed such that when it comes time for retirement?
Solution :
Using the formula of monthly payment,
Monthly payment,
Discount factor D=\frac{1-(1+i)^{-n}}{i}
Where,
Amount = ?
Monthly payment M=$2154
Rate r= 5.1%=0.051
Time = 30 years
Substitute all the values,
Monthly payment,
Nearest cent,
Therefore, the amount needed such that when it comes time for retirement is $396721.78.