Interactive practice questions
Aaron has saved $\$750000$$750000 for his retirement and sets up an annuity fund on January $1$1st which pays $3.5%$3.5% p.a compounded quarterly. He makes a $\$9000$$9000 per month withdrawal.
Determine the number of whole months that he will be able to withdraw from this annuity.
If Aaron wishes his annuity to last for $10$10 years, what monthly withdrawal should he make?
Round your answer to the nearest cent.
Lachlan received an inheritance of $\$100000$$100000. He invests the money at $8%$8% per annum with interest compounded annually at the end of the year. After the interest is paid, Lachlan withdraws $\$9000$$9000 and the amount remaining in the account is invested for another year.
Christa wins a prize of $\$80000$$80000. She invests the money at $12%$12% per annum with interest compounded monthly at the end of each month. At the start of each month, before interest is earned, Christa withdraws $\$1100$$1100 and the amount remaining in the account is invested.
Gwen received an inheritance of $\$150000$$150000. She invests the money at $6%$6% per annum with interest compounded annually at the end of the year. After the interest is paid, Gwen withdraws $\$10000$$10000 and the amount remaining in the account is invested for another year.