Due to health reasons, Dave is considering early retirement. He currently has $700,000 in a self- managed retirement fund. He thinks he will need $40,000 per year during retirement. He intends to invest his retirement in a low-risk mutual fund which return 1.5% per year. How many years can he live off this retirement fund without the need to look for a job?

Q: How much money will be in a bank account at the end of 15 years if $100 is deposited today and the…

A: Compounding interest means the interest is calculated for the principal and after each period the…

Q: Explain the true effect of more frequent compounding on annual interest amounts?

A: With more frequent compounding, the returns are higher. With the increase in compounding periods,…

Q: "You are interested in buying a piece of real property that could be worth $313,000 in 15 years.…

A: Here, we calculate the given as follow;

Q: How much do you need to save each year for 30 years in order to have $775,000, assuming you are…

A:

Q: If you want to buy a car in two years that cost $20,000.00, how much should put away every month if…

A: Present value is the value of investment in today's dollar.Future value is the value of investment…

Q: Two annuity dues in perpetuity have a common present value of $2, 000 and a common effective annual…

A: Annuity: An annuity is a finance product that enables you to receive a fixed payout for the rest of…

Q: You won a prize in a contest! There are two choices: take the $500 prize today or wait one year and…

A:

Q: Which formula is correct for the simple interest calculation? Select one: a. F = P(1+i/n) b. F =…

A: Simple interest is a cost one pays on a loan or earnings  on the savings account. The formula for…

Q: How long does it take to become a millionaire? A $500,000 investment will hit $1 million in 42 years…

A:

Q: Due to health reasons, Dave is considering early retirement. He currently has $700,000 in a self-…

A: The net present value considers the entire cash flows in future whether positive or negative over…

Q: Many years ago, Julie deposited $14,490 into a savings account. Today, the balance of the account is…

A: By using the formula;A=P1+r100n Where, A= Future value P= Present value r= Rate of interest n= Time…

Q: How many years will it take for an investment to be twice its value if it earns 8% compounded…

A: We use the rule of 72 here. No. of years needed to double any investment = 72/ interest rate

Q: Suppose Crystal Wilson wants to accumulate $1,000,000 by the time she retires in 40 years. If she…

A: Given, FV = $1,000,000  Time = 40 years  Rate of interest = 10%

Q: Monique borrowed $1,118 for 12 weeks at a simple interest rate of 834%. How much money does she need…

A: It is given that Monique borrowed - $1,118; the simple interest rate is 8 3/4% or 8.75%. Also, it is…

Q: How much should you invest each month in order to have $700,000 if your rate of return is 3.6%…

A: A higher discount rate indicates a lower present value of the annuity while a lower discount rate…

Q: answer to the nearest cent.)

A: P.V = cash flow/(1+r)0 + cash flow/(1+r)1 + cash flow/(1+r)2 --------------‐--- + cash flow/(1+r)25…

Q: ou borrow $5,000.00 and repay it back in monthly payments of $200.00 for three years. What is the…

A: Borrowed Amount = 5000 Monthly Payment = 200 n = 3 years

Q: Mr. Benedito, a grocery store owner, borrows $50,000.00 from a loan shark, handing him a $77,000.00…

A: Given  Mr. Benedito borrows $50,000, So present value P=$50,000 The value of the promissory note is…

Q: How many years will it take an investment to triple if the interest rate is 8%compounded?

A: The rule of 115 can be used to calculate the number of years that take an investment to triple.

Q: Part of the income that a machine generates is put into a sinking fund to replace the machine when…

A: Annually Deposit = 2800 r = 4% Amount = 49000

Q: Jim's retirement account in a company currently totals $416,384. What perpetual income can Tom and…

A: To begin receiving income as soon as a policy has been established, the annuity contract is called…

Q: How much money will you have in seven yearsif you deposit $7,000 in the bank at 8.5%…

A: Compound interest rate is addition to the interest of interest. It can be applicable both loan and…

Q: Bobby has heard the importance of saving early for retirement. He wants to retire in 35 years. But…

A: Given,  Monthly Savings : $600 (PMT)Time to retire : 35 yearsTime to start savings : Now i.e 0Time…

Q: You are offered an investment that would earn $ 2,100 a year for 10 years. The first payment would…

A: investment value is $ 2,100 a year for 10 years. The first payment would be made in exactly 3…

Q: Tom Evers an attorney is planning for retirement. He earns $126,000 a year and estimates that he…

A: Given,  Tom earns $126,000 and estimates that he will need 80% of his salary for retirement in 10…

Q: Suppose you were promised $400 three years from now and $600 at the end of five years. How much is…

A: Here, we calculate the worth at 12% interest as follow;

Q: You plan to deposit $300 each year into an IRA earning 4% interest annually. How much will you have…

A: In enginnering economic, all the given information is denoted with specfiic symbols such as: Yearly…

Q: Ms. Roberts decided to invest some money in an insurance company with an interest rate of 9%…

A: We use the rule of 72 here. Rule of 72: Years to double the principal = 72/Interest Rate

Q: Liz plans to deposit $10,000 in the bank now and another $5,000 two years from now. If she plans to…

A: Deposit = 10,000 deposit after 2 years = 5,000 withdraw after 5 years = 8,000 interest rate = 10%

Q: You have two options for receiving money from an inheritance. Option 1 - Receive a single check for…

A: Here we are given the 2 payment options. And we will first derive the present value of both the…

Q: ohn paid $500 per month for 20 years to pay off a mortgage on his house. If his down payment was…

A: Future value and present value are the economic terms that are used to determine the future or…

Q: If you save $1,000 today and the annuel interest rate is 6%, what will that money be worth in 40…

A: Given, P = $1000 i = 6% t = 40

Q: How much money will be in a bank account at the end of 15 years if $100 is deposited to day and the…

A: From given information we have to calculate the amount that will be in bank account after 15 years…

Q: The interest derived from monthly compounding is always __________ that derived from quarterly…

A: Interest is the amount paid in excess of the borrowed amount by the borrower to the lender. The…