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Part b answer is 130.44

Part 2 In the original problem, Ben withdrew $16,000 from his retirement account for taking a dream vacation at the age of 50. Again assuming that Ben retires at 65 and lives to 95, a) How much can he now withdraw monthly from his retirement account? To answer this question, do the following steps: Step 1: Find the amount in the account when Ben is 50 years old using the annuity formula with the monthly deposit found in Part 1 (b): D= ,r=0.08, n = 12, t = 50 - 28 = - F=? Step 2: Find the amount left in the account after the $16,000 withdrawal. Amount left in the account = After the withdrawal, the amount left in the account would continue to draw interest every month until Ben is 65 years old (Step 3). Also, we assume that Ben would continue his investment with the annuity till he retires (Step 4). Step 3: Find the future value of the amount found in Step 2 when Ben is 65 years old, using the compound interest formula with rand n being the same as in Part 1. (Hint: t = 65-50) 29 Find the future value of the annuity for the working years: age 50 to 65. Again, the monthly deposit is the result found in Part 1 (b). 1. Find the future value of the annuity for the working years: age 50 to 65. Again, the monthly deposit is the result found in Part 1 (b). The sum of the amounts from Steps 3 and 4 is the amount that would be available when Ben retires at 65. Obviously, this amount would be less than the original goal. Step 5. Add the results obtained from Steps 3 and 4. Total amount available when Ben is 65 years old = Now let's figure out the answer to Question (a). The new monthly withdrawal can be found using the installment loan (payout annuity) formula. This time we are looking for PMT with P being the result obtained in Step 5. 4/4 Step 6: Find how much now Ben can withdraw monthly from his retirement account. P = ,r=0.08, n = 12, t = 95-65 = PMT = ? b) How much did the dream vacation actually cost in terms of his retirement account? Total withdrawals (with dream vacation taken) = monthly withdrawal x total number of withdrawals Cost of the dream vacation in terms of Ben's retirement account = total withdrawals (from Part 1 (d)) - total withdrawals (with dream vacation taken) paragraph (between new insights obtaine double-spaced typed p those are the answers just show the work Part 2 =) Step 1: $93,497.84 Step 2: $77,497.84 Step 3: $256,279.27 Step 4: $45,137.23 Step 5: $301,416.50 Step 6: $2,211.69 (monthly withdrawal with dream vacation taken) 5) Total withdrawal (with dream vacation taken) = $796,208.40 Cost of boat in terms of Jason's retirement account = $139,791.60 b) $130.44 Step 2: $2 Step 3: $25 Instructions and expectations: 1. Complete Parts 1, 2, and 3 of the project as described. 2. Clearly show all the calculations and final answers for each problem in the space provided. Label all answers with the $ symbol. Round all answers to the nearest cent. Draw a box around final answers. 3. Remember to put your name on the front page of your project. Part 1 Ben hopes to retire at the age of 65 and plans to live to be 95 years old. He wants to open a retirement account that will pay him $2,600 a month. Ben finds an account that earns interest at 8% compounded monthly. a) How much will Ben need in his account at the beginning of his retirement? If Ben is currently 28 years old, what should his monthly deposits into the account be

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