You have just retired and reached your objective (see above) of accumulating $3,600,000 in your retirement fund. You expect to live for another twenty-five years (exactly) and wish to leave $2,000,000 to Illinois Tech when you are gone. What is the most that you could withdraw from this fund at the end of each quarter and still leave the money to IIT? The fund is expected to return six percent per annum, compounded monthly?
You invest USD1,500,000 in an account that gives you an annual rate of return of 7% with continuous compounding.
1. Calculate the amount of money that you will have in the account by the end of 6 years?
2. You wish to keep the account open until you have 4,500,000. Calculate the time for this to happen. Note that this time may be presented in a fraction of a year; use 4 digits.