1 You deposit $17,000 in a retirement account on your 25th birthday, and you plan to retire on your 65th birthday. (a) If you expect to have a quarter million dollars in the retirement account when you retire, what nominal annual interest rate r, compounding
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- Fact 21 Eileen has 2.5% of her earnings deposited into her retirement plan. If $150 per month is deposited in the plan, find ner monthly and yearly earnings. 8. Her monthly earnings are $ (Round to the nearest cent as needed.) Her yearly earnings are $ (Round to the nearest cent as needed.) 09 C.SU7 365 https://xlitemprod.pearsoncmg.com/api/v1/print/mathQuestion 1 Due to health reasons, Dave is considering early retirement. He currently has $700,000 in a self- managed retirement fund. He thinks he will need S40,000 per year during retirement. He intends to invest his retirement in a low-risk mutual fund which return 1.5% per year. How many years can he live off this retirement fund without the need to look for a job?Suppose you deposited $200 at the end of every year for seven years in an account that earned 6% annual effevtive interest. At the end of seven years, how much would the account be worth?
- QUESTION 1 Muhammad takes out a loan of $ 2,130, at 8% simple interest, for 8 years. How much will he pay back at the end of year 8? QUESTION 2 Calculate the amount of interest on an investment of AED 103,971 at 8% simple interest for 5 years. QUESTION 3 If you deposit today $7,335 in an account for 6 years and at the end accumulate $10,885, how much compound interest rate (rate of return) you earned on this investment ? QUESTION 4 You will deposit 12,025 at 10% simple interest rate for 9 years, and then move the amount you would receive to an investment account at 12 % compound rate for another 3 years. How much money would you have at the end of the entire period ?c. You want $1,000,000 in the bank when you retire in 35 years. How much should you deposit each year? Assume an interest rate of 10%. What is the annual payment if you defer retire to 40 years?Ordinary annuity payment. Fill in the missing annuity in the following table for an ordinary annuity stream: Number of Payments or Years 6 21 33 15 Annual Interest Rate 9% 4% 6% 10% Future Value $0.00 $24,000.00 $0.00 $98,433.34 Annuity (Round to the nearest cent.) $ (Round to the nearest cent.) $(Round to the nearest cent.) (Round to the nearest cent.) Present Value $24,000.00 $0.00 $150,000.00 $0.00
- Suppose you are considering working at a local coffee shop 5nights a week. You expect to save $125 a month from the jobafter meeting all your expenses. To be eligible for the job youmust undergo a week’s work training at the coffee shop.Assume the training costs you $100.Suppose you plan to workthe next 9 months there and you can borrow and lend moneyat an annual rate of 6% compounded monthly.What is the net present value of this work to you?out of Sam got a job at the Brick. He plans to save $500 every month for 3 years to buy a car. The savings account earns 2.25% compounded monthly. If he puts the money in his savings account at the end of each month, how much interest is included in the future value of the annuity? Select one: OA $18 000.00 OB.$18 603.37 OC $603.37 D. $408.04 OE$18.408.04 Clear my choice1. How much would be in your account in 10 years after depositing $2000 now? The annual interest rate is 8% 2. How long will it take $500 to reach $10,000 when it grows at 8 percent per year? 3. At age 15 you invest $5,000 into a mutual fund. If you gain 25000 at age 40, the annual interest rate is?
- How much money will you have in seven yearsif you deposit $7,000 in the bank at 8.5% interestcompounded daily?4. At an annual effective interest rate of i, i > 0, both of the following annuities have a present value of Y: (a) a 10-year annuity-immediate with annual payments of 55. (b) a 15-year annuity-immediate with annual payments that pays 30 per year for the first 5 years, per year for the second 5 years, and 90 per year for the final 5 years. 60 Calculate Y. Solution:How long will it take money to double if it earns 4 percent per annum compounded annually?