Your pension plan is an annuity with a guaranteed return of 4% per year (compounded quarterly). You can afford to put $1,100 per quarter into the fund, and you will work for 40 years before retiring. After you retire, you will be paid a quarterly pension based on a 25-year payout. How much will you receive each quarter? (Round your answer to the nearest cent.)

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will.h · Answer

Cool question

will.h · Answer

1st you'll have to find the total retirement returnings after the interest rate using 
P(1 + r)^x 
R is rate of change 
X is time in years 
P is the principal 

P is 1100 per quarter which means per entire year it would be 4400 
X is 40 years
R is 4% which means 0.04

4400(1+0.04)^40

Total retirement returnings= 21124.491

Now you'll be paid on 25 years quarterly 

Divide that by 25 years to see tha amount annually. 

21124.491/25 = 844.97964 

Again divide that by 4 because the pension will be given quarterly 

844.97964/4 = 211.24491 dollars