Approximately how much should be accumulated by the beginning of retirement to provide a $2,500 monthly check that will last for 25 years, during which time the fund will earn 8% interest with monthly compounding? (roound to the nearest hundred dollar). A. $261,500.00 B. $323,900.00 C. $578,700.00 D. $690,000.00 E. Cannot be determined due to other factors.

Question

Business

Amari Mccullough

3 August, 11:08

Approximately how much should be accumulated by the beginning of retirement to provide a $2,500 monthly check that will last for 25 years, during which time the fund will earn 8% interest with monthly compounding? (roound to the nearest hundred dollar). A. $261,500.00 B. $323,900.00 C. $578,700.00 D. $690,000.00 E. Cannot be determined due to other factors.

+4

Answers (1)

Know the Answer?

Diamond Erickson · Answer 1

B. $323,900.00

Explanation:

Nper = 300 periods

Rate = 8%/12

FV = 0

PMT = $2500

Amount to be Accumulated = PV (Rate, Nper, PMT, FV)

= PV (8%/12,300,2500,0)

= $323911.31

Therefore, The amount to be accumulated by the beginning of retirement to provide a $2,500 monthly check that will last for 25 years is $323,900.