QUESTION 31After he retires, Dewey would like to be able to withdraw $1,250 every week for a total of 30 yearsafter he retires. If the account earns 5% interest, how much will Dewey need in his retirementaccount when he retires? Give your answer to the nearest dollar.Summarize the information provided, stating the interest rate in a decimal form.d =r =k =N =Identify the formula you will use to solve by writing the letter of the formula here:A. A = Po(1 + rt)B. PN = Po(1 + /k) NkC. PN = d((1 + /k)Nk – 1) ("/k)%3DD. Po = d(1 - (1 +/k¬Nk) + ("/k)Solve the problem and give your answer here:

Here, Annuity value (d) = $1,250 Interest rate (r) = 0.05 Number of years (N) = 30 years No. of…

After he retires, Dewey would like to be able to withdraw $1,250 every week for a total of 30 after he retires. If the account earns 5% interest, how much will Dewey need in his retirement account when he retires? Give your answer to the nearest dollar. years Summarize the information provided, stating the interest rate in a decimal form. d = r = k = N = Identify the formula you will use to solve by writing the letter of the formula here: A. A = Po(1 + rt) B. PN = Po(1 + /k)Nk C. PN = d((1 /KNk - 1) ("/k) D. Po = d(1 - (1 +/k)¬Nk) + ("/k) Solve the problem and give your answer here:

After he retires, Dewey would like to be able to withdraw $1,250 every week for a total of 30 after he retires. If the account earns 5% interest, how much will Dewey need in his retirement account when he retires? Give your answer to the nearest dollar. years Summarize the information provided, stating the interest rate in a decimal form. d = r = k = N = Identify the formula you will use to solve by writing the letter of the formula here: A. A = Po(1 + rt) B. PN = Po(1 + /k)Nk C. PN = d((1 /KNk - 1) ("/k) D. Po = d(1 - (1 +/k)¬Nk) + ("/k) Solve the problem and give your answer here:

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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You have just made your first $10,000 contribution to your individual retirement account. Assume you earn an annual rate of return of 12 percent compounded quarterly and make no additional contributions. What will your account be worth when you retire in 50 years?Note: Do not round intermediate calculations and round your answer to 2 decimal Blaces, e.g., 32.16. You need $20,000 to go on your dream vacation to South Africa. If you save $5,000 today in an account at 10% interest compounded annually, how long will you have to wait to go on your dream vacation?Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.
Can someone please verify if my answer is correct and explain why if it is not. thank you.
Solve it correctly please. I will rate.
Willie would like to have $500,000 set aside at retirement. He would like to make annual deposits into his retirement fund, and expects to retire in 30 years. In order to meet his goal, how much must he deposit each year if he can earn a 6% return? N =_____ I/YR =_____ PV =________ PMT =_________ FV = ____________
Rashida purchases a house for $300,000 and takes a mortgage for the full amount. Her mortgage charges 4% per year and interest is compounded monthly. She will repay the loan over 30 years with equal monthly payments. How much of the 1st payment would be applied toward interest and how much of the 1st payment would be principal? Click here to access the TVM Factor Table calculator. Interest = $ Principal = $ Carry all interim calculations to 5 decimal places and then round your final answers to a whole number. The tolerance is ±2.
You are 46 years from retirement. Starting now, if you save $8,141 at the end of every year until you retire, how much will you have at retirement if the interest rate is 5.8 percent? (Do not round any intermediate calculations. Round your final answer to 2 decimal places and enter it in the box below.)
(Related to The Business of Life: Saving for Retirement) (Future value of an ordinary annuity) You are graduating from college at the end of this semester and after reading The Business of Life box in this chapter, you have decided to invest $4,100 at the end of each year into a Roth IRA for the next 45 years. If you earn 8 percent compounded annually on your investment, how much will you have when you retire in 45 years? How much will you have if you wait 10 years before beginning to save and only make 35 payments into you retirement account? How much will you have when you retire in 45 years? (Round to the nearest cent.) (*) How much will you have if you wait 10 years before beginning to save and only make 35 payments into your retirement account? (Round to the nearest cent.)
At the age of 35, to save for retirement, you decide to deposit $90 at the end of each month in an IRA that pays 5% compounded monthly. a. b. Use the following formula to determine how much you will have in the IRA when you retire at age 65. A= A= P[(1+r)²-1] r P -|C Find the interest. or a. You will have approximately $ when you retire. (Do not round until the final answer. Then round to the nearest dollar as needed.) in the IRA b. The interest is approximately $ (Use the answer from part a to find this answer. Round to the nearest dollar as needed.)
show working using both a financial calculator and spreadsheet. after, show answer rounded off to the nearest dollar. Sam is in discussion with you about saving for his retirement. You are to advise him on how much he should deposit annually to meet his retirement needs. Assume that he will deposit a fixed annual amount for the next 20 years into a retirement savings account, starting one year from now. Sam has a son who will be attending college and plans to make 5 withdrawals (starting one year after making his final deposit into the retirement account) of $35,000 each to pay for his annual tuition for the following 5 years. Commercial Banks will be paying 6 percent on such retirement accounts for the next 25 years. Kindly advise Sam on how much he should place in the account annually to cover his retirement needs.
Suppose you retired at age 65 and your retirement benefits is $50,000 which remains constant for the next 25 years. During the first year, it is enough to cover your cost of living expenses. But because of inflation, your cost of living is expected to increase at 5% every year. To compensate the increase, you will withdraw funds from another savings account which earns 7% annually. Find the equivalent present worth of the cost of living. Round off answer (no decimals). * Projected Retirement Pension $50,000 $50,000 Years 12 3 4 S 6 |21 22 23 24 |25 $50,000 $50,000 (1.05) Projected Cost of Living $161,255
Assume that you contribute $220 per month to a retirement plan for 25 years. Then you are able to increase the contribution to $440 per month for another 25 years. Given a 9.0 percent interest rate, what is the value of your retirement plan after the 50 years? Note: Do not round intermediate calculations and round your final answer to 2 decimal places.
You want to buy a new house. You can afford to pay $15,000 per year for 30 years with the first payment being due one year from today. If the interest rate on your loan is 3%, what price of home can you buy today? Enter your answer as a number rounded to 2 decimal places.

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