Susan and Bill Stamp want to set up a TDA that will generate sufficient interest at maturity to meet their living expenses, which they project to be $1,100 per month. (Round your answers to the nearest cent.)
(a) Find the amount needed at maturity to generate $1,100 per month interest, if they can get 7 1/4% interest compounded monthly?
(b) Find the monthly payment that they would have to make into an ordinary annuity to obtain the future value found in part (a) if their money earns 9 3/4% interest and the term is thirty years?