Bill started saving for his retirement when he was 37. Each month he deposited$100.00 into an annuity that earns 3.2% compounded monthly. Assume the interestrate stays the same while the account is open. You may round your answers to thenearest cent.How much will be in the account when Bill turns 70?Future Value$Of this future account balance, how much comes from Bill's deposits?Total Deposited$How much interest, in total, will he earn?Interest

Future value of amount includes the amount being that is deposited and amount of compounded interest…

Bill started saving for his retirement when he was 37. Each month he depo $100.00 into an annuity that earns 3.2% compounded monthly. Assume rate stays the same while the account is open. You may round your answe nearest cent. How much will be in the account when Bill turns 70? Future Value $ Of this future account balance, how much comes from Bill's deposits?

Bill started saving for his retirement when he was 37. Each month he depo $100.00 into an annuity that earns 3.2% compounded monthly. Assume rate stays the same while the account is open. You may round your answe nearest cent. How much will be in the account when Bill turns 70? Future Value $ Of this future account balance, how much comes from Bill's deposits?

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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Similar questions

You have just made your first $4,500 contribution to your individual retirement account. Assume you earn an annual return of 11.3 percent and make no additional contributions. What will your account be worth when you retire in 39 years?
Khalil has decided to start an ordinary annuity.he plans to deposit $500 into this account each month at 2.4 % annual interest compounded monthly. How much will he have in this account in 20 years?
Lola Fritola is planning for her retirement by making quarterly payments to an annuity with each payment increasing by 0.4% every quarter. Her first payment is $5,100 and she plans to contribute for the next 1O years. How much will she have in her retirement savings if the money is invested to earn 4.2% compounded quarterly? (Round your final answer to 2 decimal places.) Retirement savings %$4
An investor deposits $100 into his credit union account that pays interest at the rate of 3.25% per year (payable at the end of each year). He leaves the money and all accrued interest in the account for 7 years. How much will he have at the end of the 7 years?
In 2012 the maximum Social Security deposit by an individual was $8,386.75. Suppose you are 27 and make a deposit of this amount into an account at the end of each year. How much would you have (to the nearest dollar) when you retire if the account pays 2% compounded annually and you retire at age 65?_____$
Tom plans to save $92 a month, starting today, for 18 years. Dick plans to save $92 a month for 18 years, starting one month from today. Both Tom and Dick expect to earn an average return of 5.4 percent APR on their savings and both will make the same number of deposits. At the end of the 18 years, how much more (in $) will Tom have than Dick? Answer to two decimals.
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.
If Jackson deposits 100 dollars at the beginning of each month in a savings account earning interest at the rate of 8%/year compounded monthly, how much will he have on deposit in his savings account at the end of 6 yr, assuming that he makes no withdraws during that period?
B7
Ira Roth opens up a Roth IRA and places $4,500 in his retirement account at the beginning of each year for 20 years. He believes the account will earn 8 percent interest per year, compounded quarterly. How much will he have in his retirement account in 20 years?
Calculate (rounded to the nearest cent) the value c tieth birthday. Money in the savings account will earn interest at a rate of 9% pa The retirement annuity will earn interest at a rate of 12% pa compounded monthly. all the money in his savings account at that time to purchase a retirement annuity. Immediately after making his last deposit on his fiftieth birthday, the man will use consecutive equal monthly deposits P into a savings account starting on his thir- To be able to retire on his fiftieth birthday, a twenty-nine year old man will make 6.5.1 Example compounded monthly. the man's monthly deposits for each of the following retirement plans. A The retirement annuity will pay the man R1 000 every month for fifteen years.
1. At the end of each month for 45 years, a 25-year-old deposits $100 into a retirement account at 7.2% interest, compounded monthly. Use the increasing annuity formula to determine how much money will be in the account when this investor reaches age 70. (Round your answer to the nearest dollar.)

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