Question

4-58. Lisa plans to retire on her 61st birthday. On her

Answer 1

Answer:

Lisa invest "$2180.81" in her bank.

Step-by-step explanation:

The given values are:

On Lisa's 62nd birthday,

she withdraw = $10,000

The annuity of $A will remain at 3 percent for 40 years. The retirement pension of $10000 lasts 23 years at rate percentage of 3 but begins 40 years later.

⇒  $A\times (\frac{P}{A} ,3 \ percent,40) - 10000 (\frac{P}{A} ,3 \ percent,23)\times \frac{1}{(1.03)40} = 0$

⇒  $A\times 23.1148 - 10000\times 16.4436\times 0.3066 = 0$

⇒  $A = 10000\times 16.4436\times \frac{0.3066}{23.1148}$

⇒      $= 10000\times 16.4436\times 0.0132$

⇒      $=2180.81$ ($)