8. [-17.69 Points)
DETAILS TANFIN12 5.3.036.
MY NOTES
Yumi's grandparents presented her with a gift of $18,000 when she was 12 years old to be used for her college education. Over the next 5 years, until she turned 17, Yumi's parents had
invested her money in a tax-free account that had yielded interest at the rate of 4.5%/year compounded monthly. Upon turning 17, Yumi now plans to withdraw her funds in equal annual
instaliments over the next 4 years, starting at age 18. If the college fund is expected to earn interest at the rate of 5%/year, compounded annually, what will be the size of each installment?
(Assume no interest is accrued from the point she turns 17 until she makes the first withdrawal. Round your answer to the nearest cent.)
Submit Answer
9. [-17.59 Points]
DETAILS
TANFIN12 5.3.038.
MY NOTES
Jennifer is the owner of a video game and entertainment software retail store. She is currently planning to retire in 30 years and wishes to withdraw $12,000/month for 20 years from her
retirement account starting at that time. How much must she contribute each month for 30 years into a retirement account earning interest at the rate of 2%/year compounded monthly to
meet her retirement goal? (Round your answer to the nearest cent.)