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Mr. X has just celebrated his 35th birthday. He plans to retire on his 65th...

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Finance

Mr. X has just celebrated his 35th birthday. He plans to retire on his 65th birthday.
He has determined that he will need a total of $400,000 at that time to fund his retirement.
a) His company offers a 401k retirement plan that earns 5.75% compounded monthly.
How much (rounded to the nearest dollar) should Mr. X deposit at the end of each month to achieve his retirement goal?
b) Assume that upon reaching age 65, Mr. X has attained his goal and has a total of $400,000 in the bank. He now wishes to purchase an annuity that will make monthly payments for 25 years (until he reaches age 90); at the end of that time, the account will be depleted.
Assuming that he can continue to earn 5.75% compounded monthly, what monthly payment will he receive?

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