Problem: Use nominal rate 4.8% compounded monthly:
(1) James and Jane retire with $500,000 in their retirement account. If they want that to last for 25 years, how much can they take out each month.
(2) Nick and Nora are 30 and intend to retire at age 65; they are just starting a retirement plan. How much must they deposit each month so that after retirement, they can draw out $3,500 each month for 20 years?
(3) Mick and Moira are 30 and intend to retire at age 65; they are just starting a retirement plan. How much must they deposit each month so that after retirement, they can take out $30,000 for a wild vacation and then draw out $3,500 each month for 20 years?