**Saving Early Plan 2:** Invest $350 at the end of each month into an account paying 7.5% compounded monthly for 15 years, then leave the money in the account earning interest until retirement (making no additional withdrawals or investments until retirement). **Using the assumptions above, write down your answer to each of the following questions:** 6. **Create the following table of values for this investment plan, Saving Early Plan 2,** (the table should be handwritten) to find the amount available after 15 years. Write N/A next to any variable that does not apply and write Solve next to the appropriate variable. | P = | r = | |--------|--------| | A = | t = | | M = | n = | 7. **Indicate the best formula to use to compute the amount available after 15 years.** 8. **Substitute the values into the formula and compute how much money will be available after 15 years.** 9. **Now create the following table of values for this investment plan, Saving Early Plan 2,** (the table should be handwritten) to find the amount available at retirement. Write N/A next to any variable that does not apply and write Solve next to the appropriate variable. | P = | r = | |--------|--------| | A = | t = | | M = | n = | 10. **Indicate the best formula to use to compute the amount available at retirement.** 11. **Substitute the values into the formula and compute how much money will be available at retirement.** 12. **Compute the total amount of money you paid into the retirement account over the 45 years from the time you started saving, and** 13. **Compute the total amount of interest earned over the entire 45 years of saving.** (Note: There are tables where variables such as P (principal), r (interest rate), A (amount), t (time), M (monthly investment), and n (number of compounding periods) need to be filled in. The appropriate formula for calculating the future values of annuities should be used for computations.)
**Saving Early Plan 2:** Invest $350 at the end of each month into an account paying 7.5% compounded monthly for 15 years, then leave the money in the account earning interest until retirement (making no additional withdrawals or investments until retirement). **Using the assumptions above, write down your answer to each of the following questions:** 6. **Create the following table of values for this investment plan, Saving Early Plan 2,** (the table should be handwritten) to find the amount available after 15 years. Write N/A next to any variable that does not apply and write Solve next to the appropriate variable. | P = | r = | |--------|--------| | A = | t = | | M = | n = | 7. **Indicate the best formula to use to compute the amount available after 15 years.** 8. **Substitute the values into the formula and compute how much money will be available after 15 years.** 9. **Now create the following table of values for this investment plan, Saving Early Plan 2,** (the table should be handwritten) to find the amount available at retirement. Write N/A next to any variable that does not apply and write Solve next to the appropriate variable. | P = | r = | |--------|--------| | A = | t = | | M = | n = | 10. **Indicate the best formula to use to compute the amount available at retirement.** 11. **Substitute the values into the formula and compute how much money will be available at retirement.** 12. **Compute the total amount of money you paid into the retirement account over the 45 years from the time you started saving, and** 13. **Compute the total amount of interest earned over the entire 45 years of saving.** (Note: There are tables where variables such as P (principal), r (interest rate), A (amount), t (time), M (monthly investment), and n (number of compounding periods) need to be filled in. The appropriate formula for calculating the future values of annuities should be used for computations.)
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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Please answer #9-#13
Transcribed Image Text:**Saving Early Plan 2:**
Invest $350 at the end of each month into an account paying 7.5% compounded monthly for 15 years, then leave the money in the account earning interest until retirement (making no additional withdrawals or investments until retirement).
**Using the assumptions above, write down your answer to each of the following questions:**
6. **Create the following table of values for this investment plan, Saving Early Plan 2,** (the table should be handwritten) to find the amount available after 15 years. Write N/A next to any variable that does not apply and write Solve next to the appropriate variable.
| P = | r = |
|--------|--------|
| A = | t = |
| M = | n = |
7. **Indicate the best formula to use to compute the amount available after 15 years.**
8. **Substitute the values into the formula and compute how much money will be available after 15 years.**
9. **Now create the following table of values for this investment plan, Saving Early Plan 2,** (the table should be handwritten) to find the amount available at retirement. Write N/A next to any variable that does not apply and write Solve next to the appropriate variable.
| P = | r = |
|--------|--------|
| A = | t = |
| M = | n = |
10. **Indicate the best formula to use to compute the amount available at retirement.**
11. **Substitute the values into the formula and compute how much money will be available at retirement.**
12. **Compute the total amount of money you paid into the retirement account over the 45 years from the time you started saving, and**
13. **Compute the total amount of interest earned over the entire 45 years of saving.**
(Note: There are tables where variables such as P (principal), r (interest rate), A (amount), t (time), M (monthly investment), and n (number of compounding periods) need to be filled in. The appropriate formula for calculating the future values of annuities should be used for computations.)
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