How much money can you withdraw each month during retirement if you deposit $400 per month for 40 years and you want to have $1,500,000 left over to leave to your grandkids after 25 years of retirement? Assume you will earn 9% while you are working and 6% after you retire. This is an extra credit question worth Answer choices below have been rounded to the nearest dollar.

Q: Suppose you want to have $700,000 for retirement in 25 years. Your account earns 5% interest. How…

A: The retirement amount after 25 years (FV) is $700,000. The period is 25 years. The rate of interest…

Q: You just retired with $179,500 in your retirement account. How much will you be able to withdraw at…

A: The PMT function or concept can be used to determine the periodic payments required to accumulate a…

Q: Suppose you want to have $400,000 for retirement in 20 years. Your account earns 8% interest. How…

A: Here, Particulars Values Future value (FV)  $ 4,00,000.00 Annual interest rate 8.00% Time…

Q: Suppose you want to have $500,000 for retirement in 25 years. Your account earns 6% interest. How…

A: The future value of an annuity is the future worth of a series of cash flows at a certain rate of…

Q: You would like to have $1,000,000 when you retire in 35 years. How much should you invest each…

A: Solution:When an equal amount is invested each periodat end of period, it is called ordinary…

Q: You would like to save $250,000for retirement. If you are planning to retire 30 years from now, how…

A: The monthly deposit is the amount that is paid every month until the maturity of the period.

Q: year, to make a down payment of $75,752 on a vacation home If you can earn 3.03 percent on your…

A: The future value idea is a useful tool for investors to compare various investment prospects.…

Q: You would like to have $800,000 when you retire in 40 years. How much should you invest each quarter…

A: The future value of an annuity is the amount that a series of payments, or annuity, will grow to…

Q: How much money would you need to have at retirement so that you can withdraw $50,000 a year for 20…

A: Present value of annuity concept is required to use in this case. Present value of annuity is the…

Q: You want to be able to withdraw $50,000 each year for 30 years. Your account earns 10% interest. a)…

A: Check the detailed answer belowExplanation:Part 1: Answer:a) $393,905.65b) $1,500,000c)…

Q: You would like to have $600,000 when you retire in 40 years. How much should you invest each quarter…

A: Here, To Find: Part a). Amount of deposit each quarter =? Part b). Total money deposited into the…

Q: Suppose you want to have $600,000 for retirement in 25 years. Your account earns 6% interest. How…

A: Using excel PMT function = PMT(rate,nper,pv,fv)

Q: You are 65 years old and about to retire. You have $100,000 saved in a retirement account and would…

A: The present value of the amount represents the current value of the future cash flows. The…

Q: A) How much should you deposit at the end of each month into an investment account that pays 8.5%…

A: Requirement is to save $1,000,000 in 35 years. Investor is going to deposit same amount at the end…

Q: You plan on investing $1.900 every 4 years while earning 6% per year. How much money will you have…

A: Future value refers to the concept of time, the value of money which is used for computing the value…

Q: You want to receive $8,000 per month in retirement.  If you can earn 0.6% return per month and you…

A: You want to receive $8,000 per month in retirement.  If you can earn 0.6% return per month and you…

Q: You are 20 years old today.  You plan to start saving for retirement on your 29th birthday in the…

A: The process of developing a plan for one's future is referred to as financial planning. It aids…

Q: Suppose you want to have $400,000 for retirement in 30 years. Your account earns 5% interest. How…

A: Computation as follows: Hence, each month deposit will be $480.62.

Q: Suppose you want to have $500,000 for retirement in 30 years. Your account earns 9% interest. How…

A: Compound = monthly = 12 Future value = fv = $500,000 Time = t = 30 *  12 = 360 months Interest rate…

Q: You want to be able to withdraw $50,000 each year for 20 years. Your account earns 8% interest. a)…

A: a) Hence, the amount in the account at the beginning is $490,907.37 b) Hence, the total money pull…

Q: ou want to be able to withdraw $35,000 each year for 30 years. your account earns 6%  how much do…

A: An annuity is defined as the sum of recurring payments over a period of time at a certain date, at a…

Q: You would like to save $250,000 for retirement. If you are planning to retire 30 years from now, how…

A: Future value of the retirement account should be (FV) = $250000 Number of periods of month payments…

Q: Suppose you want to have $400,000 for retirement in 25 years. Your account earns 4% interest. How…

A: Using excel PMT function

Q: You want to receive $5,000 per month in retirement. If you can earn 0.75% per month and you expect…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: Suppose you want to have $500,000.00 for retirement in 35 years. You plan to make regular monthly…

A: Future value is the value of the cash flows at the end of certain period. Future value of annuity is…

Q: ming that you are twenty years old and you have decided that you want to have $450,000 in the bank…

A: With the intention of protecting or growing the invested capital, investments entail the purchase or…

Q: You want to be able to withdraw $35,000 each year for 25 years. Your account earns 5% interest. a)…

A:

Q: Suppose you retired at age 65 and your retirement benefits is $50,000 which remains constant for the…

A: Given:  Year 1 , PMT = $50000 It grows by 5% till year 25 Rate of interest = 7%

Q: You would like to have $550,000 when you retire in 40 years. How much should you invest each quarter…

A: Required Amount at retirement is $550,000 Time period is 40 years Interest rate is 6.4% Compounded…

Q: Suppose your parents have just retired and have $1 million in a retirement account. For how many…

A: The time value of money is the concept that money available today is worth more than the same amount…

Q: You want to be able to withdraw $5000 from an account at the end of each year for the next 12 years.…

A: Information Provided: Payment = $5000 Term = 12 years Interest rate = 5.5% compounded annually

Q: You want to be able to withdraw $1, 500 from your account each month for 20 years after you retire…

A: The given problem can be solved using PV and PMT  function in excel. PV function computes current…

Q: You want to be able to withdraw $20,000 each year for 30 years. Your account earns 5% interest. How…

A: Given, Amount withdrawn each year (P) = $20,000 Rate of interest (i) = 5%  or  0.05 Number of years…

Q: You want to be able to withdraw $30,000 each year for 15 years. Your account earns 5% interest. a)…

A: Periodic Withdrawal = $30,000 Time Period = 15 Years Interest Rate = 5%

Q: Suppose you want to have $300,000 for retirement in 35 years. Your account earns 10% interest. a)…

A: A study that proves that the future worth of the money is lower than its current value due to…

Q: You want to be able to withdraw $50,000 each year for 30 years. Your account earns 5% interest.…

A: This the question of present value of ANNUITY. Annuity is a equal stream of cashflow at equal…

Q: You want to be able to withdraw $25,000 each year for 30 years. Your account earns 8% interest.…

A: Present value of annuity.PV = A * wherePV = Present value of annuity.A = periodic paymentsr =…