Compute the amount of monthly payment

Reference no: EM1354949

ASSUME that in 25 years you will need $500,000 for your retirement (i.e. retirement is actually 25 years away, and you want to have saved $500,000). If you will make equal MONTHLY payments at the end of each MONTH for the next 25 years to fund your retirement, what is the amount of the MONTHLY payments required to fund your retirement? Assume the 8% APR discount rate with monthly compounding for this question only.
a. 3859
b. 3903
c. 570
d. 526
e. insufficient information to compute

Reference no: EM1354949

Questions Cloud

Net realizable value of accounts receivable : Before year end adjusting entries, Bass Company's account balances at December 31, 2007, for accounts receivable and the related allowance for uncollectible accounts were $600,000 and $45,000, respectively.

By what factor is the angular displacement changed : A machine part rotates at an angular speed of 0.48 rad/s; its speed is then increased to 2.8 rad/s at the angular acceleration of 0.61 rad/s2.

Explain professional experiences or possible professional : Explain professional experiences or possible professional experiences in this organization

Question about organizational commitment : Question about Organizational Commitment - Organizational commitment

Compute the amount of monthly payment : Suppose that in 25 years you will need $500,000 for your retirement retirement is actually 25 years away, and you want to have saved $500,000.

Organizational strategies to go green : What are some examples from your experience where you observed an organization "go green"? What strategies were employed and were they effective?

How many revolutions does the wheel make during this time : A loudspeaker of mass 22 {rm kg} is suspended a distance of h = 1.60 {rm m} below the ceiling by two cables that make equal angles with the ceiling. Each cable has a length of l = 3.30 {rm m}.

Explain security in the workplace continues to remain : Explain Security in the workplace continues to remain a high priority for organizations, especially in light of increases in workplace violence.

Stock investment beta expected return : Suppose the following data for the BU Scholarship Investment Fund. The total investment in the fund is $1 million.

User Account

All Pages