Author Question: Herbert has opened a retirement fund account which pays 7 percent interest and requires 5,000 annual ... (Read 39 times)

KimWrice · **on:** Jul 10, 2018

Herbert has opened a retirement fund account which pays 7 percent interest and requires 5,000 annual deposits. Herbert will retire in 15 years and expects 10 years of retirement life.

What is the maximum annual retirement benefit Herbert can get during his retirement years?

Question 2

The number of outstanding shares of common stock is always greater than or equal to the number of authorized shares of common stock.

Indicate whether the statement is true or false

nathang24 · **Reply #1 on:** Jul 10, 2018

Answer to Question 1

I = 7, PMT = 5,000, N = 15, PV=0
At the beginning of retirement:
CPT FV = 125,645
Annual retirement benefit: i = 7, n = 10, PV = 125,645, FV=0
CPT PMT = 17,887.96

Answer to Question 2

FALSE