Kaileika's retirement plan consists of contributing $123 at the end of each month into an RRSP. If the planearns 5.5% compounded quarterly for the first fourteen years and 6.5% compounded semiannually thereafter,how much money will be in Kaileika's RRSP at the end of a thirty-three year term?Today= $FV1 =+FV = $$123$12314 years45Calculate the following values on the time diagram.$123FVI+$12347 years+$123 $123►FV2a

Future value of money is the amount of investment done and amount of interest accumulated over the…

Kaileika's retirement plan consists of contributing $123 at the end of each month into an RRSP. If the plan earns 5.5% compounded quarterly for the first fourteen years and 6.5% compounded semiannually thereaft how much money will be in Kaileika's RRSP at the end of a thirty-three year term? Today $123 $123 14 years W $123 FV1 $123 $123 47 years $123 FV2

Kaileika's retirement plan consists of contributing $123 at the end of each month into an RRSP. If the plan earns 5.5% compounded quarterly for the first fourteen years and 6.5% compounded semiannually thereaft how much money will be in Kaileika's RRSP at the end of a thirty-three year term? Today $123 $123 14 years W $123 FV1 $123 $123 47 years $123 FV2

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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Ques 15 and 16
22 Marvin plans to retire at the end of this year (2022). His expected life expectancy is 25 years after retirement. Marvin ut of has come to you, his financial advisor to learn how much he uestion should deposit on December 31, 2022 to be able to withdraw $4,000 at the end of each month for the next 25 years. Assuming the amount on deposit will earn annual interest of 2% compounded monthly, how much should Marvin deposit on December 31, 2022 in order to achieve his retirement plan? O a. $1,555,284.50 O b. S865,405.73 Oc $943,720.43 O d. $790,696,14
Jason Horton works for Chevron as a welder on offshore drilling rigs. His retirement plan contributions are $3800 at the beginning of each 6-month period. Assume that the account grows at 6% compounded semiannually for 15 years. Find the (a) future value of the annuity and (b) the interest earned. * $52,547.60; $9,447.60 $9,947.60; $55,547.60 $55,547.60; $9,947.60 Other:
Today, Barry reached his 50th birthday and he has $70,000 in his retirement fund. His goal is to have $500,000 on his 65th birthday. He can expect his investments to earn 13% compounded semiannually. How much will he have to invest at the end of every six months for the next 15 years in order to reach his goal? Group of answer choices $428.30 $926.14 $4,978.30 $1,722.84 $2,388.89
Note: Dont "t Post Image with answer Jim Fortunate received a large insurance settlement of $ 200,000. When Jim retires in 25 years, he would like to have at least $80,000 yearly income for 10 years. A local bank pays 6% interest compounded semiannually on a certificate of deposit. How much of the settlement Must Jim place in the bank to meet his retirement goal?
If $650 000 is saved for retirement, what rate of interest, compounded monthly, will provide payments of $3750 every month for the next 25 years? Select one: O a. 14.606797% O b. 0.811327% O c. 4.888702% O d. 4.867963%
A medical doctor, 48 years old, is enrolled in a pension fund that will pay he $6,000 monthly at retirement age 60. This fixed monthly pension payout will be for a period of 25 years. The doctor requires a 6%)annual return on her investments. The present value of this annuity today is closest to: A- $462798 B. $469.858 C- $945447
Problem 7-04 You annually invest $1,000 in an individual retirement account (IRA) starting at the age of 30 and make the contributions for 10 years. Your twin sister does the same starting at age 45 and makes the contributions for 20 years. Both of you earn 6 percent annually on your investment. What amounts will you and your sister have at age 65? Use Appendix A andAppendix C to answer the question. Round your answers to the nearest dollar.Amount on your account: $ Amount on your sister's account: $ Who has the larger amount at age 65?-Select-You haveYour sister hasItem 3 the larger amount.
Bros I want to retire in 20 years she deposits 1200 monthly into a retirement account earning 4.5% interest. What is the formula that I need you to determine her account balance at the time of retirement
James plans to receive a monthly annuity of $779 for the next 25 years as part of his inheritance. The interest rate is 10.78 per annum compounded monthly Calculate the present value (PV) of this annuity. $72.26 O$779.00 $867.16 $289.05 O $1.11
Calculate the annual premium for the following policy. (Use Table 20.1.) (for females subtract 3 years from the table.) (Round your answer to the nearest cent.) **TABLE ATTACHED***** Amount of coverage (face value of policy) Age and sex of insured Type of insurance policy Annual premium $50,000 27 (F) 20-year endowment
An insurance company offers you an end-of-year annuity of $48,000 per year for the next 20 years. They claim your return on the annuity is 9 percent. What should you be willing to pay today for this annuity? a. $408,672 b. $438,192 c. $398,144 d. $429,600

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