1. You want to receive 5,000 per month in retirement. If you can earn 0.75% per month and you expect to need the income for 25 years, how much do you need to have in your account at retirement?

2. You want to receive $5,000 per month for the next 5 years. How much would you need to deposit today if you can earn 0.75% per month?

3. What monthly rate would you need to earn if you only have $200,000 to deposit?

(FOR EXTRA CREDIT – please answer a. and b.):

Suppose you have $200,000 to deposit and can earn 0.75% per month.

a. How many months could you receive the $5,000 payment?

b. How much could you receive every month for 5 years?

4. You want to have $1 million to use for retirement in 35 years. If you can earn 1% per month, how much do you need to deposit on a monthly basis if the first payment is made in one month? What if the first payment is made today?