28-year old Kathy has decided to contribute $3000 once every year into her retirement account that is expected to produce 7% a year from age 28 through age 45. She will then stop making annual contribution to the account, but keep funds in the accounts invested at 7% expected return. By age 55, how much will she have in her retirement account? $200,643.3 $324,080.85 $101,997.10 $281,423.22 $394,696.58

28-year old Kathy has decided to contribute $3000 once every year into her retirement account that is expected to produce 7% a year from age 28 through age 45. She will then stop making annual contribution to the account, but keep funds in the accounts invested at 7% expected return. By age 55, how much will she have in her retirement account? $200,643.3 $324,080.85 $101,997.10 $281,423.22 $394,696.58

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Laura has decided that she wants to build enough retirement wealth that, if invested at 6.50% per year (compounded monthly), will provide her with $3,500 of monthly income for 25 years. To date,she has saved nothing, but she still has 30 years until she retires. How much money does Laura need to contribute per month to reach her goal? $468.60 $536.90 $415.65 $573.10 $390.86
Please do not work this problem in excel thank you in advance. Jill and Frank plan to retire in 40 years. How much do they need to deposit each month in a sinking fund in order (Links to an external site.) to have $750,000 when they retire if they earn 4.8% compounded monthly?
A couple thinking about retirement decide to put aside $12,500 each year in a savings plan that earns 7.50% interest. In 9 years they will receive a gift of $89,500 that also can be invested. a. How much money will they have accumulated 27 years from now? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Accumulated savings $ b. If their goal is to retire with $1,648,383 of savings, how much extra do they need to save every year? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
A couple plans to retire in 25 years. At that time, they would like to have enough money in an account so that they can receive a $3,600 every month end for 20 years. The account earns APR 5.8% and will continue to do so until there is a zero balance in the account. To achieve this goal, how much money does the couple need to have in this account by the time they retire? (calculate to cents.)
A retired couple plans to supplement their Social Security with interest earned by a $210,000 retirement fund. a. If the fund compounds interest monthly at an APR of 4.9%, which the couple takes out at the end of the year for spending in the next year, how much average interest is generated each month? b. Suppose the APR drops to 2.3%. What is the resulting average interest payment each month? c. Estimate the APR needed to generate $1100 each month in average interest. ret le ith?
Maria started a new job at age 25. At that time, she began investing $14400 each year earning a return of 8%. At age 35, after 10 years of those investments, her financial situation changed and she was not able to continue the annual contributions. If she leaves the money already invested in her account, what will be the balance of her account after 30 more years assuming the same 8% interest rate? O $1049567.94 O $208606.46 O $1631278.22 O $2099135.88
You annually invest $2,000 in an individual retirement account (IRA) starting at the age of 30 and make the contributions for 15 years. Your twin sister does the same starting at age 35 and makes the contributions for 25 years. Both of you earn 7 percent annually on your investment. What amounts will you and your sister have at age 60? Use Appendix A and Appendix C to answer the question. Round your answers to the nearest dollar.Amount on your account: $ Amount on your sister's account: $ Who has the larger amount at age 60?-Select-You haveYour sister hasItem 3 the larger amount.
Sherry has a goal of retiring with $427,480 by making weekly deposits into an investment account whose annual interest rate is 1.1%. If she will retire in 25 years, how much interest will she earn?
Eve is 20 years old and wants to save $2 million for retirement at age 60. Assume she invests in a savings account that earns 5.1% interest compounded annually. How much does Eve need to invest to get started? $273,477.34 $27,347.73 $2734.77 $173,277.43
A 40 year old woman puts $1500 in a retirement account at the end of each quarter through 20 years then stops making further deposits. She keeps money in her account for the next 5 years. How much will she have in her account when she retires at the age of 65 if the bank pays interest at 6.4% compounded quarterly?
Your aunt has $760,000 invested at 5.5%, and she now wants to retire. She wants to withdraw $45,000 at the beginning of each year, beginning immediately. She also wants to have $50,000 left to give you when she ceases to withdraw funds from the account. For how many years can she make the $45,000 withdrawals and still have $50,000 left in the end? 41.13 39.50 38.56 39.10 45.61
Mick plans to start saving money for retirement. By taking 10% of monthly gross income. Mick is able to contribute $572 each money to a retirement plan. The account is expected to earn interest with an APR of 5.25% compounded monthly. Round to answers to two decimal cases places. a.How much money will be in Mick retirement account if he continues to make the same monthly investment for 40 years? b.Overall Mick contributed how much of her own money into the retirement account? c. What percent of the final balance in Mick retirement account was interest?

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