Kierra J.

asked • 06/24/20

Ricardo is a 30-year-old pack-and -a-half per day smoker who pays $10.49 per pack of cigarettes. Observing an uncle suffering from emphysema, he decides to stop smoking...

Ricardo is a 30-year-old pack-and -a-half per day smoker who pays $10.49 per pack of cigarettes. Observing an uncle suffering from emphysema, he decides to stop smoking. emphysema, he decides to stop smoking. Assuming an annuity with an interest rate of 5.1% compounded monthly and investing the cost of 45 packs each month.


a) Find the future value when Ricardo is 65

b) Find the amount he can withdraw from his annuity each month for 15 years after he retires.

1 Expert Answer

By:

Kierra J.

Were does the 4 come from I thought it was supposed to be 12 for compounded monthly not quarterly?
Report

06/25/20

David W.

tutor
Well, ya got me there. It seems you understand since you caught my error. Good job!
Report

06/25/20

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