Retirement amount

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Eugene began to save for his retirement at age 32, and for 10 years he put $ 275 per month into an ordinary annuity at an annual interest rate of 8% compounded monthly. After the 10 years, Eugene was unable to make the monthly contribution of $ 275, so he moved the money from the annuity into another account that earned 8% interest compounded monthly. He left the money in this account for 23 years until he was ready to retire. How much money did he have for retirement?

Retirement amount =

If Eugene had waited until he was 45 years old to start saving for retirement and then decided to put money into an ordinary annuity for 20 years earning 8% interest compounded monthly, what monthly payment would he have to make to accumulate the same amount for retirement as you found in the first part of the question?

Retirement amount =

Reference no: EM13924465

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