a) You want to retire exactly 40 years from today with $2,130,000 in your retirement account. If you think you can earn an interest rate of 10.79 percent compounded monthly, how much must you deposit each month to fund your retirement?
b) You are going to deposit $3,500 in an account that pays .61 percent interest compounded quarterly. How much will you have in 7 years?
c) You have just won the lottery and will receive a lump sum payment of $23.21 million after taxes. Instead of immediately spending your money, you plan to deposit all of the money into an account that will earn 5.32 percent. If you make equal annual withdrawals for the next 30 years, how much can you withdraw each year starting exactly one year from now?