Reference no: EM132481004

Dunder Mifflin, Inc. (DMI) has just started to deposit $151.73 at the end of each month into its workers' retirement fund (i.e., the first deposit will take place one month from now). These deposits will continue for each worker until he or she retires. Mike Scott, a manager at Dunder Mifflin, is planning to retire in 12 years. During the retirement phase of his life, MIke would like to withdraw $2,800 per month (at the end of each month) from his retirement account for the following 28 years. If Mike currently has $100,000 invested and can earn 6.6% APR with monthly compounding, on all money invested (including that from DMI), how much will he need to put into the account at the end of each month for the next 12 years in order to have enough money to retire and then make the withdrawals as planned? (Just to be clear, the same interest rate applies across the entire 40-year horizon.)