Determine what his monthly payment needs to be

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Reference no: EM131442521

Professor Brain is going to work for the next 25 years and then retire. At the end of the 25th year he would like to withdraw $80,000 per year from an investment account until the end of the 50th year (26 withdrawals). At the end of the 51st year he would like to have $100,000 to leave to his heirs. He currently has $60,000 to start the investment account. The investment account pays 8% with monthly compounding. Brain would like to know how much he should invest in the account each month with the first payment to be made in 1 month and continuing until he retires at the end of the 25th year. Please help Professor Brain determine what his monthly payment needs to be.

Reference no: EM131442521

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