9You are planning to save for retirement over the next 20 years. To do this, you will inves$1,200 a month in a stock account and $900 a month in a bond account. The return othe stock account is expected to be 10 percent, and the bond account will pay 6 percentWhen you retire, you will combine your money into an account with a return of 8 percent38ntsHow much can you withdraw each month from your account assuming a 20-yeawithdrawal period?

Value in 20 years for stock account:

Answered: 9 You are planning to save for…

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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Assume that you can invest to earn a stated annual rate of return of 12 percent, but where interest is compounded semiannually. If you make 20 consecutive semiannual deposits of $500 each, with the first deposit being made today, what will your balance be at the end of Year 20? Group of answer choices $52,821.19 $57,900.83 $58,988.19 $62,527.47 $64,131.50
You plan to invest $12,000 per year into a retirement account. If you earn a compound annual rate of return of 11%, how many years will it take you to reach a balance of $1,500,000? Question 2 options: 22.83 25.79 24.24 21.09 26.76
4. If you deposit $4,500 at the end of each of the next 30 years into an account paying 7.9 percent interest, how much money will you have in the account in 30 years? How much will you have if you make deposits for 40 years?
Bha
You make $10,000 deposit 1 year from now, $15,000 deposit 3 years from now and $20,000 deposit 5 years from now. You plan to retire 30 years from now. What monthly income you will receive due to these deposits over five years after the retirement? The first payment would be received at the end of the first month after the retirement and the last payment on the month ending the fifth year. The rate of return is 7.14%. Choices: $3,956.71 $9,221.89 $3,235.26 $4,267.06 $5,614.60
You are planning to save for retirement over the next 35 years. To do this, you will invest $619 per month in a stock account and $373 per month in a bond account. The return of the stock account is expected to be 7 percent, and the bond account will return 4 percent. When you retire, you will combine your money into an account with a return of 8 percent. How much can you withdraw each month from your account assuming a 30-year withdrawal period?
You are trying to decide how much to save for retirement. Assume you plan to save $4,000 per year with the first investment made one year from now. You think you can earn 7% per year on your investments and you plan to retire in 41 years, immediately after making your last $4,000 investment. a. How much will you have in your retirement account on the day you retire? b. If, instead of investing $4,000 per year, you wanted to make one lump-sum investment today for your retirement that will result in the same retirement saving, how much would that lump sum need to be? c. If you hope to live for 27 years in retirement, how much can you withdraw every year in retirement (starting one year after retirement) so that you will just exhaust your savings with the 27th withdrawal (assume your savings will continue to earn 7% in retirement)? d. If, instead, you decide to withdraw $70,000 per year in retirement (again with the first withdrawal one year after retiring), how many years will it take…
You are trying to decide how much to save for retirement. Assume you plan to save $4,000 per year with the first investment made one year from now. You think you can earn 10.5% per year on your investments and you plan to retire in 36 years, immediately after making your last $4,000 investment. a. How much will you have in your retirement account on the day you retire? b. If, instead of investing $4,000 per year, you wanted to make one lump-sum investment today for your retirement that will result in the same retirement saving, how much would that lump sum need to be? c. If you hope to live for 28 years in retirement, how much can you withdraw every year in retirement (starting one year after retirement) so that you will just exhaust your savings with the 28th withdrawal (assume your savings will continue to earn 10.5% in retirement)? d. If, instead, you decide to withdraw $270,000 per year in retirement (again with the first withdrawal one year after retiring), how many years will it…
Suppose your parents deposit $4,000 into an account at the end of each year for 11 years. The account earns an annual interest rate of 1.4%. After the final deposit, they move the accumulated savings to a brokerage account and invest in the stock market, where they earn an average annual return of 6.9% for the following 16 years. How much will they have in the account at the end? O a. $131,280 O b. $404,155 O c. $137,311 O d. $296,336 e. $302,138 f. $279,603 g. $496,270 h. $249,511
You hope to have $35,000 in your investment account in ten years. If you invest $25,000 today, what annual rate of return would your investment account need to generate if you make no future deposits? O 3.4% O 3.8% O 40.0% O 1.7%
How much should you invest each month in order to have $500,000 if your rate of return is 3.9% compounded monthly and you want to achieve your goal in 40 years?$How much interest will you earn?$How much should you invest each month in order to have $500,000 if you want to achieve your goal in 20 years?$If you deposit the amount you need to achieve your goal in 20 years, how much will your savings be worth after 10 years?$

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