Alex changed jobs and plans to rollover the retirement savings from his old job. His new employer offers a retirement account that earns 6%/year compounded monthly. Alex will rollover $75,000 from his old account and make monthly contributions of $500 for the next 15 years. How much money will be in the retirement account at the end of that time? Use units and context in your answer, round to two decimal places.

Alex changed jobs and plans to rollover the retirement savings from his old job. His new employer offers a retirement account that earns 6%/year compounded monthly. Alex will rollover $75,000 from his old account and make monthly contributions of $500 for the next 15 years. How much money will be in the retirement account at the end of that time? Use units and context in your answer, round to two decimal places.

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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Suppose you want to have $400,000 for retirement in 10 years. Your account earns 9% interest. Feel free to use the Online Basic Financial Calculator a) How much would you need to deposit in the account each month? S b) How much interest will you earn? S
Suppose you want to have $600, 000 for retirement in 15 years. Your account earns 9% interest. Feel free to use the Online Basic Financial Calculator a) How much would you need to deposit in the account each month? $ b) How much interest will you earn? $
Jeni has decided that she needs to start saving for her retirement. She can afford $100 a month deducted automatically from her paycheck. She deposits it into an account that earns 4.5% interest compounded monthly. How much will she have in her account when she retires 42 years later? A. $ 14,922.70 B.$ 50,400.00 C. $132,213.00 D. $149,226.96
A young professional wishes to have $820000 in her retirement account. Its current value is $36000. She invests $600 monthly in the account which earns a 8.1% annual interest rate, with interest compounded monthly. Find the number of payments needed to reach her goal.
You have just made your first $4,500 contribution to your individual retirement account. Assume you earn an annual return of 10.85 percent and make no additional contributions. a. What will your account be worth when you retire in 43 years? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. b. What if you wait 10 years before contributing? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. a. Account value if you start now b. Account value if you wait 10 years
Hailey starts an IRA (Individual Retirement Account) at the age of 22 to save for retirement. Shedeposits $450 each month. The IRA has an average annual interest rate of 8% compounded monthly.How much money will she have saved when she retires at the age of 65? Round your answer to thenearest cent, if necessary.
Darnell Johnson wants to know if he can retire in 35 years at age 60, when he plans to do a lot of fishing. Assume the deposit into his retirement account averages $3800 at the end of each year and that the funds earn 6% per year. find amount of annuity and the interest earned.
You currently have a balance of $200,000 in your retirement account. You expect to contribute $7,50o to your retirement account at the end of each year for the next 30 years and your employer will match your contributions; thus, the annual end- of-year contributions to your retirement account will be $15,000. If you earn 8% on your retirement account, how much money will you have in your account when you retire in 30 years? You have a 4-year-old daughter and want to have $120,000 in her college fund when she starts college. You expect to earn a 7% return on her college-fund investments. If you want to make 14 equal-sized end-of-year deposits into your daughter's college fund, how much do you need to deposit each year to have $120,000 when she starts college? $ %24 %24
Suppose a man retires at age 65, and in addition to Social Security, he needs $2200 per month in income. Based on an expected lifetime of 204 more months, how much would he have to invest in a life income annuity earning 4% APR to pay that much per year? (Round your answer to two decimal places.)
Calculate the amount of money you would be saving for a month by no longer spending $10. Please show your work. If you were to retire at 65, find the number of years left for you to retire. Show calculations. If you were to invest the monthly savings (every month) in an account that gives you 7% interest compounded monthly, calculate the amount of money you would have in your retirement account (at age 65) by making this one change in your lifestyle. Show all the steps.
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 23.04 years and pool the money into a savings account that pays 3.09% APR. They plan on living for 28.39 more years and making their yearly withdrawals at the beginning of the year. What will be their yearly withdrawal? Yearly Contribution Account Fidelity Mutual Fund Vanguard Mutual Fund Employer 401k Balance $24,614.86 $183,591.46 $306,050.80 $1,000.00 $10,000.00 $15,000.00 APR 6.06% 7.55% 5.06%
After learning about the time value of money, you decided to open a retirement account. You will invest $475 each month. It earns an annual interest rate of 10.8% per year. Your first deposit will be made one month from now. What is the value of your account in 33 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Retirement account value

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