Question

@Vocaloid am I stupid or does this need to be infinity

Answer 1

Suppose you are 35 years old and would like to retire at age 60. ​Furthermore, you would like to have a retirement fund from which you can draw an income of ​$125,000 per year-forever! How much would you need to deposit each month to do​ this? Assume a constant APR of 8​% and that the compounding and payment periods are the same.

Answer 2

\[A = PMT \frac{ ((1 + \frac{ APR }{ n } )^{(nY)}-1)}{ \frac{ APR }{ n } }\]
Where,
A = accumulated savings
PMT = monthly payments
APR = annual percentage rate
n = number of payment periods per year
Y = number of years

Answer 3

this question doesn't really make sense to me but my guess is that you would just let A = 125000, Y = 25, n = 12, APR = 0.08 and just solve for PMT

Answer 4

Yeah the "forever" part is what has me confused. I'll just do that though and see what it says.

Answer 5

Since I have three tries at this.

Answer 6

god i can't write today

Answer 7

forever probably isn't the best way to word it though

Answer 8

\[PMT = \frac{ 125,000 }{ \frac{ ((1 + \frac{ 0.08 }{ 12 })^{(12 \times 25)} -1 }{ ( \frac{ 0.08 }{ 12 } ) } }\]

They wanted an integer, got 131, was wrong

Answer 9

Just double checked, my calculation was fine. This problem is too obscure with what it wants.

Answer 10

Wait a second

Answer 11

Nvm this is what they need:

To draw ​$125,000 per​ year, there must be ​$_ in your savings account when you retire.

Answer 12

uhhhh

Answer 13

Why they have two questions in one question, no idea.

Answer 14

ahh I see what was wrong with my initial assumptions, A can't just be 125,000

Answer 15

I mean it isn't your bad, I didn't see what they were really asking.

Answer 16

They changed the format up on me. What they usually have in the actual question and then what they have by the answer box is the same. Here it's different, as you can see.

Answer 17

dumb question but do they tell you how many year's worth of income you should have accumulated

Answer 18

That's all they give me. The only thing I didn't post is the round to the nearest integer.

Answer 19

There isn't any problem like this in the powerpoint too.

Answer 20

this is just a shot in the dark
we could find the amount you need to have accumulated in order to make 125,000 worth of interest per year, that's pretty simple

125,000 = P(0.08)^1
then you'd solve for P and use this as the A-value in the your monthly payment formula

Answer 21

I don't want you to like waste attempts on a tentative solution though

Answer 22

$1,462,500 to have $125,000 interest for one year.

Answer 23

Hmm

Answer 24

I got 1,562,500

Answer 25

Oh yeah I'm blind. It is 5, no idea how I saw 4. No sleep smh

Answer 26

I'm part of a hw help discord, I could probably toss this question there and see what they think

Answer 27

Alright. This HW is due in 3hrs so I can just finish other stuff then come back to this.

Answer 28

I think that's most likely it though, as I got $1,642.96-> $1,643.

Answer 29

\(\color{#0cbb34}{\text{Originally Posted by}}\) @Vocaloid
I got 1,562,500
\(\color{#0cbb34}{\text{End of Quote}}\)
This was it. Got it correct