Finance Homework: Retirement Plan

Posted on 2014-04-03 06:33:00 in Finance by STEPHANIE

jane Q. employee has just started her new job with Big Conglomerate, Inc., and is already looking forward to retirement. BCI offers her as a pension plan an annuity that is guaranteed to earn 4.5% annual interest compounded monthly. She plans to work for 35 years before retiring and would then like to be able to draw an income of $8,500 per month for 25 years. How much do she and BCI together have to deposit per month into the fund to accomplish this?

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