If interest is compounded annually, it grows as follows. Suppose P0 is the initial amount and INT is the interest rate per year. If P1 and P2 represent the balance at the end of the first and second year, respectively, then P1 ¼ P0 + P0 INT ¼ P0 ( 1 + INT) P2 ¼ P1 + P1 INT ¼ P1 ( 1 + INT) ¼ P0 ( 1 + INT) ( 1 + INT) ¼ P0 ( 1 + INT) 2. In general, if Pk represents the amount at the end of the kth year, then Pk ¼ P0 ( 1 + INT) k. When money is deposited in an IRA, usually it is sheltered from taxes until the money is withdrawn after the age of 59. Suppose that someone close to you opened such an account for you on your 16 th birthday at 7% interest, and then he or she forgot about it ( so no money was added or withdrawn). On your 60 th birthday, some fortune hunters notify you about this account. The money has been compounded annually at the 7% rate. Write a program that reads an initial amount and computes the total in the account on your 60th birthday. You decide to leave the money in the IRA for another year. Starting from your 61st birthday, you decide to withdraw each years interest income. In other words, you withdraw the years interest and leave the rest of the money untouched. How much income would you receive per month for the rest of your life?
"Design your program to accept any integer input. Test it with initial investments of $ 1700, $ 3600, and $ 8500. (Note: Use the predefined method pow from the Math class to compute the amount at your 60th birthday.)
The program should do all the necessary computing, and output all the relevant data as follows: (from my Instructor: This program should only prompt for prompt for the principle amount. The remaining problem should include static variables (60 for the age, etc)."
The initial investment was $_____________. The total amount accumulated after _____________ years, if $_____________ is allowed to compound with interest at 7.00%, comes to $_____________. The total amount accumulated after _____________ ( years + 1) years, if $ _____________ is allowed to compound with interest at 7.00%, comes to $_____________. The interest earned during this year is $_____________. If interest is withdrawn each year thereafter, my income is $_____________ per month. The initial investment was $_____________. The total amount accumulated after _____________ years, if $_____________ is allowed to compound with interest at 7.00%, comes to $_____________. The total amount accumulated after _____________ ( years + 1) years, if $ _____________ is allowed to compound with interest at 7.00%, comes to $_____________. The interest earned during this year is $_____________. If interest is withdrawn each year thereafter, my income is $_____________ per month. The initial investment was $_____________. The total amount accumulated after _____________ years, if $_____________ is allowed to compound with interest at 7.00%, comes to $_____________. The total amount accumulated after _____________ ( years + 1) years, if $ _____________ is allowed to compound with interest at 7.00%, comes to $_____________. The interest earned during this year is $_____________. If interest is withdrawn each year thereafter, my income is $_____________ per month.