Part A.) Yesterday, Bill set up a trust fund to tide you over for the next twenty years. He deposited $749,000 in the account and you will be able to withdraw $4,000 per month for the next twenty years. At the end of twenty years, you don't get any more money, but whatever amount remains in the account value is going to be donated to charity in your honor. If the account earns 7 percent per year, compounded monthly, how much will the charity receive twenty years from now? Calculate to the nearest dollar and make sure you enter the number as a positive value.
Part B.) Bill has decided to begin investing for retirement. He is going to put his tax return of $7,359 into the account today and then set up monthly contributions from his paycheck in the amount of $283. The money will go into an account that earns 5.7 percent annual interest (compounded monthly). How much will he have in the account after 31 years?