You need to achieve the desired monthly yield

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Reference no: EM132015628

1. You plan to work for 40 years and then retire using a 25-year annuity. You want to arrange a retirement income of $4700 per month. You have access to an account that pays an APR of 8.4% compounded monthly.

What size nest egg do you need to achieve the desired monthly yield? (Round your answer to the nearest cent.)

2. A stock investor deposited $1,000 ten years ago in a non-dividend paying stock. Today the stock is valued at $1,220. What annual rate of return has this investor earned?

Reference no: EM132015628

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