For the past 10 years you have been depositing $300 per month into the SPDR bond fund with an interest rate of 2.61% per year compounded monthly. You have now transferred your current balance to the Xtrackers bond fund with an interest rate of 2.71% per year compounded monthly, where you plan to continue depositing $300 per month until you retire in 15 years. How much can you anticipate having in the investment account when you retire?

For the past 10 years you have been depositing $300 per month into the SPDR bond fund with an interest rate of 2.61% per year compounded monthly. You have now transferred your current balance to the Xtrackers bond fund with an interest rate of 2.71% per year compounded monthly, where you plan to continue depositing $300 per month until you retire in 15 years. How much can you anticipate having in the investment account when you retire?

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 are planning to save for retirement over the next 25 years. To do this, you will invest $1,200 a month in a stock account and $900 a month in a bond account. The return of the stock account is expected to be 7 percent, and the bond account will pay 4 percent. When you retire, you will combine your money into an account with a return of 5 percent. How much can you withdraw each month from your account assuming a 20-year withdrawal period? Multiple Choice $621,766.96 $9,279.68 $9.469.06 $9,658.44 $113,628.75
You are planning your retirement in 10 years. You currently have $161,000 in a bond account and $601,000 in a stock account. You plan to add $7,900 per year at the end of each of the next 10 years to your bond account. The stock account will earn a return of 10.75 percent and the bond account will earn a return of 7.25 percent. When you retire, you plan to withdraw an equal amount for each of the next 24 years at the end of each year and have nothing left. Additionally, when you retire you will transfer your money to an account that earns 6.5 percent. How much can you withdraw each year in your retirement? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. Annual withdrawal amount $ 188,765.43
You plan to invest an amount of money in a five-year certificate of deposit (CD) at your bank. The stated interest rate is 12%, compounded Quarterly. How much must you invest if you want the balance in the CD account to be $7,500 in five years?
In 5 years, you will start receiving monthly payments of $1000 from a trust fund that one of your great parents set up for you. The first payment will be made at the very end of year 5 and the payments will last for 34 years. You plan to deposit the money you receive every month into a special account right away that pays 6.60% APR with quarterly compounding. Today the account mentioned above has a balance of $14000. Assuming that interest rate will stay constant, what will be the account balance at the end of the 15th year?
You are planning to save for retirement over the next 30 years. To do this, you will invest $1,300 a month in a stock account and $1,000 a month in a bond account. The return of the stock account is expected to be 10 percent, and the bond account will pay 5 percent. When you retire, you will combine your money into an account with a return of 7 percent. How much can you withdraw each month from your account assuming a 15-year withdrawal period? Multiple Choice $1,102,254.13 $34.571.73
How much do you have to deposit today so that beginning 11 years from now you can withdraw $12,000 a year for the next 6 years (periods 11 through 16) plus an additional amount of $24,000 in the last year (period 16)? Assume an interest rate of 9 percent.
You intend to save for retirement over the upcoming 30 years by allocating R850 monthly to a stock account and R250 monthly to a bond account. The expected return for the stock account is 11%, while the bond account is anticipated to yield 6%. Upon retirement, you plan to merge your funds into an account with a 5% return. All interest rates are Annual Percentage Rates (APRs) compounded monthly. What would be the monthly withdrawal amount from your account over a 25-year period post - retirement?
Suppose you deposit $650 per month in a mutual fund that is expected to bear 10% interest compounded monthly. If you do this faithfully, how much will your account be worth after 29 years? Round your answer to the nearest whole number.
You just opened an account with a mutual fund and will invest $200 each month through its automatic investment program. Assuming your earn a 6% annual rate of return, how much money will you have in 5 years?
Bha
Suppose you deposit $550 per month in a mutual fund that is expected to bear 9% interest compounded monthly. If you do this faithfully, how much will your account be worth after 27 years? Round your answer to the nearest whole number.
You are planning to save enough to retire in 40 years. To do this, you will invest $1,000 at the end of each month in a stock account and $500 at the end of each month in a bond account. The stock account is expected to give 8% APR, compounded monthly. The bond account is expected to give 4% APR, also compounded monthly. When you retire, you will combine the two accounts and invest in an account that will earn 6% APR. How much will you withdraw from your post-retirement account every month if your withdrawal period is 25 years?

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