how much money would you need to have in annuitypaying 6% interest if you want to be able to withdraw $2000 each month for 20 years?

Approach to solving the question:Please see attached photo for detailed solution. Thank you.Detailed…

Answered: how much money would you need to have…

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications

Section: Chapter Questions

Problem 11E

See similar textbooks

Similar questions

You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years. Which table will help you determine the value of your account at the end of 12 years? A. future value of one dollar ($1) B. present value of one dollar ($1) C. future value of an ordinary annuity D. present value of an ordinary annuity
Calculating interest earned and future value of savings account. If you put 6,000 in a savings account that pays interest at the rate of 3 percent, compounded annually, how much will you have in five years? (Hint: Use the future value formula.) How much interest will you earn during the five years? If you put 6,000 each year into a savings account that pays interest at the rate of 4 percent a year, how much would you have after five years?
Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $4,200 over the next 6 years when the interest rate is 8%, how much do you need to deposit in the account? B. If you place $8,700 in a savings account, how much will you have at the end of 12 years with an interest rate of 8%? C. You invest $2,000 per year, at the end of the year, for 20 years at 10% interest. How much will you have at the end of 20 years? D. You win the lottery and can either receive $500,000 as a lump sum or $60,000 per year for 20 years. Assuming you can earn 3% interest, which do you recommend and why?
How much money would you need to have at retirement so that you can withdraw $50,000 a year for 20 years from an account earning 7% compounded annually? How much total money would you pull out of this account?
How much must you deposit each year into your retirement account starting now and continuing through year 10 if you want to be able to withdraw $80,000 per year forever, beginning 31 years from now? Assume the account earns interest at 15% per year. What is the answer, and how can I get it?
You want to be able to withdraw S30, 000 from your account each year for 30 years after you retire.You expect to retire in 25 years.If your account earns 7% interest, how much will you need to deposit each year until retirement to achieve your retirement goals?
Suppose you put $ 600 a month for retirement into an annuity earning 7.5% compounded monthly. If you need $ 550000 to retire, in how many years will you be able to retire?
Suppose you put $ 500 a month for retirement into an annuity earning 5.25% compounded monthly. If you need $ 700000 to retire, in how many years will you be able to retire? Years =
If you are considering the purchase of a consol that pays $60 per year forever, and the rate of interest you want to earn is 10% per year, how much money should you pay for the consol?
Suppose you have a different option to deposit $500 in a savings account at the beginning of each year for 5 years. How much would you have if the account paid 4.25%?
Suppose you invest in an annuity that pays 5% interest, compounded semiannually. How much will you need to invest, semiannually, to reach a savings goal of $500,000 at the end of 25 years?
Suppose you want to have $300,000 for retirement in 20 years. Your account earns 10% interest. a) How much would you need to deposit in the account each month? S b) How much interest will you earn? S

SEE MORE QUESTIONS

Recommended textbooks for you

Financial Accounting Intro Concepts Meth/Uses

Finance

ISBN:

9781285595047

Author:

Weil

Publisher:

Cengage

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

Pfin (with Mindtap, 1 Term Printed Access Card) (…

Finance

ISBN:

9780357033609

Author:

Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:

Cengage Learning

Financial Accounting Intro Concepts Meth/Uses

Finance

ISBN:

9781285595047

Author:

Weil

Publisher:

Cengage

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

Pfin (with Mindtap, 1 Term Printed Access Card) (…

Finance

ISBN:

9780357033609

Author:

Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:

Cengage Learning

EBK CONTEMPORARY FINANCIAL MANAGEMENT

Finance

ISBN:

9781337514835

Author:

MOYER

Publisher:

CENGAGE LEARNING - CONSIGNMENT

SEE MORE TEXTBOOKS

how much money would you need to have in annuity paying 6% interest if you want to be able to withdraw $ 2000 each month for 20 years?