For your retirement, you want to live on 19,000 per month while you are retired. Interest rates after retirement will be 7.5% APR compounded monthly. When you retire, you will spend 300,000 for a trip around the world.   You plan to live 30 years after retirement, and leave 1 million for your kids. You have $3,000 to invest today, and 40 years to save up for this retirement. At a 11% APR compounded monthly, how much do you need to put in each month to accomplish your goals?

Q: alculating Annuity Payments You want to be a millionaire when you retire in 40 years. How much do…

A: Due to compounding of interest over the period of time large amount of interest is being accumulated…

Q: After consulting with your financial advisor, you figured that you need $9,000 per year for your…

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Q: Your financial advisor has encouraged you to save $500 each month for retirement. You expect to…

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Q: Your investment advisor wants you to purchase an annuity that will pay you $35,000 per year for 10…

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Q: you have 500,000 saved for retirement. your acccount earns 6% interest . how much will you be able…

A: Amount saved for retirement = 500,000 Interest = 6%

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A: Effective rate: Any rate that is compounded annually is called an effective rate.Nominal rate: Any…

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Q: Assume that you contribute $150 per month to a retirement plan for 20 years. Then you can increase…

A: Future value refers to the value an investment or cash flow is expected to grow to at a specific…

Q: compounded

A: Formula to calculate the present value or amount to be deposited today is: PV = FV/(1+r)^n Where PV…

Q: luring your retirement, starting 40 years from now and lasting 30 years, you want tp have monthly…

A:

Q: You just read about an opportunity to purchase an annuity that pays $1,000 at the end of each of the…

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A: Future value is the amount of deposit done and plus amount of compounding interest accumulated over…

Q: You are planning to buy a house in 8 years. You would like to be able to make a down payment of…

A: Continuous compounding is often used in financial calculations because it simplifies mathematics and…

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Q: You want to retire in 30 years with $2,500,000 in your retirement account, how much do you need to…

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A: PERPETUITY : IT IS ANNUITY WHICH IS PAID FOREVER. PV =ar where, a=annual payment r= rate

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Q: save

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A: Retirement planning is quite necessary and that should be done based on time value of money and…