A couple is saving for retirement with three different accounts. The table below shows the current balances in their accounts, along with their yearly contribution, and the yearly return on each account. The couple will retire in 24.00 years and pool the money into a savings account that pays 4.00% APR. They plan on living for 30.00 more years and making their yearly withdrawals at the beginning of the year. What will be their yearly withdrawal? Balance Yearly Contribution $1,000.00 Account Fidelity Mutual Fund Vanguard Mutual Fund Employer 401k $21,452.00 $183,845.00 $307,061.00 Submit Answer format: Currency: Round to: 2 decimal places. $10,000.00 $15,000.00 APR 7.00% 7.00% 6.00%

A couple is saving for retirement with three different accounts. The table below shows the current balances in their accounts, along with their yearly contribution, and the yearly return on each account. The couple will retire in 24.00 years and pool the money into a savings account that pays 4.00% APR. They plan on living for 30.00 more years and making their yearly withdrawals at the beginning of the year. What will be their yearly withdrawal? Balance Yearly Contribution $1,000.00 Account Fidelity Mutual Fund Vanguard Mutual Fund Employer 401k $21,452.00 $183,845.00 $307,061.00 Submit Answer format: Currency: Round to: 2 decimal places. $10,000.00 $15,000.00 APR 7.00% 7.00% 6.00%

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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A 40-year-old woman decides to put funds into a retirement plan. She can save $1,000 a year and earn 7 percent on this savings. How much will she have accumulated if she retires at age 65? Use Appendix C to answer the question. Round your answer to the nearest dollar.$ At retirement how much can she withdraw each year for 20 years from the accumulated savings if the savings continue to earn 7 percent? Use Appendix D to answer the question. Round your answer to the nearest dollar.$
Craig and sally just got married .they want to have $750.000 in a retirement account in 40 years . How much should they deposit at the end of every 6 months sat 2% compounded semiannually in order to reach this goal?
What should be the balance in a Registered Retirement Income Fund (RRIF) that will provide $3,000 at the beginning of each half-year for 4 years, if the RRIF earns 5.25% 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?
A couple is saving for retirement with three different accounts. The table below shows the current balances in their accounts, along with their yearly contribution, and the yearly return on each account. The couple will retire in 20.00 years and pool the money into a savings account that pays 3.00% APR. They plan on living for 29.00 more years and making their yearly withdrawals at the beginning of the year. What will be their yearly withdrawal? Account Fidelity Mutual Fund Vanguard Mutual Fund Employer 401k Balance $23,497.00 $187,441.00 $314,214.00 Yearly Contribution $1,000.00 $10,000.00 $15,000.00 APR 6.00% 7.00% 6.00%
A retired couple plans to supplement their retirement income with monthly withdrawals of the interest earned on a retirement account which has a balance of $200,000. a. If the fund earns interest monthly at an APR of 6%, which the couple always withdraws from the account, how much is generated in interest each month? Round/take your answer to the nearest cent. Recall that APR stands for Annual Percentage Rate. 24 b. Estimate (to the nearest tenth of a percent) the annual interest rate needed for this couple to be able to earn $1,350 per month in interest from this $200,000 account. Round your answer to the nearest tenth of a percent, eg., 2.5%.
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.
Using a scientific calculator Mr and Mrs Gonzales set up a TDA to save for their retirement. They are having $100 deducted from Mrs. Gonzales's biweekly checks which will earn 8 1/8% interest. Find the future value of their ordinary annuity if it comes to term after they retire in 35.5 years.
A couple is saving for retirement with three different accounts. The table below shows the current balances in their accounts, along with their yearly contribution, and the yearly return on each account. The couple will retire in 23.00 years and pool the money into a savings account that pays 3.00% APR. They plan on living for 28.00 more years and making their yearly withdrawals at the beginning of the year. What will be their yearly withdrawal? Yearly Contribution $1,000.00 $10,000.00 Account Fidelity Mutual Fund Vanguard Mutual Fund Employer 401k Balance $23,186.00 $180,962.00 $315,917.00 Submit Answer format: Currency: Round to: 2 decimal places. $15,000.00 APR 6.00% 8.00% 6.00%
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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