# You Have A 4 000 Credit Card Debt And You Plan To Pay It Off Through Monthly Pay

1.\$4,000\$100

Alonzo plans to retire as soon as he has accumulated \$250,000 through quarterly payments of \$5,000. If Alonzo invests this money at 5.4% interest, compounded quarterly, how long (to the nearest year) until can he retire?

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yr?

3.You wish to accumulate \$100,000 through monthly payments of \$500. If you can earn interest at an annual rate of 4% compounded monthly, how long (to the nearest year) will it take to accomplish your goal?

yr?

4.Your pension plan is an annuity with a guaranteed return of 4% per year (compounded quarterly). You can afford to put \$1,300 per quarter into the fund, and you will work for 40 years before retiring. After you retire, you will be paid a quarterly pension based on a 25-year payout. How much will you receive each quarter? (Round your answer to the nearest cent.)

\$ ?

Meg’s pension plan is an annuity with a guaranteed return of 3% per year (compounded quarterly). She would like to retire with a pension of \$20,000 per quarter for 5 years. If she works 25 years before retiring, how much money must she and her employer deposit each quarter? HINT [See Example 5.] (Round your answer to the nearest cent.)

\$ ?

6.Find the present value PV of the annuity account necessary to fund the withdrawal given. HINT [See Quick Example 3.] (Assume end-of-period withdrawals and compounding at the same intervals as withdrawals. Round your answer to the nearest cent.)

\$1,700 per quarter for 10 years, if the account earns 6% per year

PV = \$?

7.Find the periodic payments PMT necessary to accumulate the given amount in an annuity account. HINT [See Quick Example 2.] (Assume end-of-period deposits and compounding at the same intervals as deposits. Round your answer to the nearest cent.)

\$40,000 in a fund paying 7% per year, with monthly payments for 5 years

PMT = \$  ?

5.