Homework Help is Here – Start Your Trial Now!
Business
Finance
a) Approximately how long (approximate years) would it take if you put in a lump sum to double at the rate above? b) How much will you have after 43 years if you deposit $5,214 at the end of each year? c) How much will you have after 43 years if instead, you deposit $100 at the end of each week instead (forget about the leap years, pretend there are 52.14 weeks per year for the next 43 years) at the same growth rate?

a) Approximately how long (approximate years) would it take if you put in a lump sum to double at the rate above? b) How much will you have after 43 years if you deposit $5,214 at the end of each year? c) How much will you have after 43 years if instead, you deposit $100 at the end of each week instead (forget about the leap years, pretend there are 52.14 weeks per year for the next 43 years) at the same growth rate?

Essentials Of Investments
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
See similar textbooks
icon
Related questions
Question

Please show excel formulas

Let's say you are 27 years old and planning on retiring when you are 70. You plan on saving and depositing into an account that yields, on average, 5% per year. You do not intend to take out any principle or interest until you retire. a) Approximately how long (approximate years) would it take if you put in a lump sum to double at the rate above? b) How much will you have after 43 years if you deposit $5,214 at the end of each year? c) How much will you have after 43 years if instead, you deposit $100 at the end of each week instead (forget about the leap years, pretend there are 52.14 weeks per year for the next 43 years) at the same growth rate? d) How long (in years) would you need to save in order to save $1,000,000 if you deposited $100 weekly and there are still only 52.14 weeks in the year at the growth rate above? e) What rate would you need to receive if you started to save at age 35 for 35 years, if you deposit $5,214 at the end of each year (forget about the leap years) to have $1,000,000? f) After retirement, you expect an average return of 2%. If you expect to live another 20 years, how much can you take out monthly for 20 years to totally exhaust your funds from your answer in part b (no money left over)?
Transcribed Image Text:Let's say you are 27 years old and planning on retiring when you are 70. You plan on saving and depositing into an account that yields, on average, 5% per year. You do not intend to take out any principle or interest until you retire. a) Approximately how long (approximate years) would it take if you put in a lump sum to double at the rate above? b) How much will you have after 43 years if you deposit $5,214 at the end of each year? c) How much will you have after 43 years if instead, you deposit $100 at the end of each week instead (forget about the leap years, pretend there are 52.14 weeks per year for the next 43 years) at the same growth rate? d) How long (in years) would you need to save in order to save $1,000,000 if you deposited $100 weekly and there are still only 52.14 weeks in the year at the growth rate above? e) What rate would you need to receive if you started to save at age 35 for 35 years, if you deposit $5,214 at the end of each year (forget about the leap years) to have $1,000,000? f) After retirement, you expect an average return of 2%. If you expect to live another 20 years, how much can you take out monthly for 20 years to totally exhaust your funds from your answer in part b (no money left over)?
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 5 steps with 6 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Techniques of Time Value Of Money
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Recommended textbooks for you
Essentials Of Investments
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
FUNDAMENTALS OF CORPORATE FINANCE
FUNDAMENTALS OF CORPORATE FINANCE
Finance
ISBN:
9781260013962
Author:
BREALEY
Publisher:
RENT MCG
Financial Management: Theory & Practice
Financial Management: Theory & Practice
Finance
ISBN:
9781337909730
Author:
Brigham
Publisher:
Cengage
Foundations Of Finance
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS