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  3. problem 4: mr. cousins would like to retire in 32

Problem 4: Mr. Cousins would like to retire in 32 years. He would like to...

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Problem 4: Mr. Cousins would like to retire in 32 years. He would like to accumulate $1,200,000 at the time of retirement to live a contented life. He would like set aside equal amount each month to achieve his goal. What is the monthly amount he should save if he can invest them at an interest rate of 10.8%. [Annual rate) [Assume monthly compounding] Problem 5: Mr. Homemaker has just taken out a $175,000 mortgage at an interest rate of 3.6% [Annual rate). The mortgage calls for equal monthly payments for 15 years. Then the amount of the monthly payment is: [Assume monthly compounding] Problem 6: Given the following data: (Assume annual compounding or discounting) (Assume that all payments are end of the year payments) Annual Retirement Income Needed Years until Retirement Years in Retirement Rate of Return before Retirement Rate of Return during Retirement (a) Calculate the Savings Required at Retirement $120,000/Year 30 25 9.00% 6.00% (b) Calculate equal annual Investment Required prior to retirement to accumulate the amount needed for

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