1. Mario and Claudia deposit $460 into their joint account at the end of each quarter. If their account earns 11%/year/month (11% per year compounded monthly), How many quarters will it take them to have a total of $23,000 in their savings account?
2. You decide to open an IRS approved retirement account at your local brokerage firm. Your best estimate is that it will earn 12%. At the end of each year for the next 21 years, you will deposit $3,800 per year into the account (21 total deposits). Three years after the last deposit, you will begin making annual withdrawals.
a) If you want to make 33 annual withdrawals, what amount will you be able to withdraw each year?
b) If you want the account to last forever, what amount will you be able to withdraw each year?