Laura has decided that she wants to build enough retirement wealth that, if invested at 6.50% per year (compounded monthly), will provide her with $3,500 of monthly income for 25 years. To date,she has saved nothing, but she still has 30 years until she retires. How much money does Laura need to contribute per month to reach her goal? $468.60 $536.90 $415.65 $573.10 $390.86

Laura has decided that she wants to build enough retirement wealth that, if invested at 6.50% per year (compounded monthly), will provide her with $3,500 of monthly income for 25 years. To date,she has saved nothing, but she still has 30 years until she retires. How much money does Laura need to contribute per month to reach her goal? $468.60 $536.90 $415.65 $573.10 $390.86

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

Maria started a new job at age 25. At that time, she began investing $14400 each year earning a return of 8%. At age 35, after 10 years of those investments, her financial situation changed and she was not able to continue the annual contributions. If she leaves the money already invested in her account, what will be the balance of her account after 30 more years assuming the same 8% interest rate? O $1049567.94 O $208606.46 O $1631278.22 O $2099135.88
Sherry has a goal of retiring with $427,480 by making weekly deposits into an investment account whose annual interest rate is 1.1%. If she will retire in 25 years, how much interest will she earn?
Eve is 20 years old and wants to save $2 million for retirement at age 60. Assume she invests in a savings account that earns 5.1% interest compounded annually. How much does Eve need to invest to get started? $273,477.34 $27,347.73 $2734.77 $173,277.43
Baghiben
Your parents will retire in 26 years. They currently have $230,000 saved, and they think they will need $1,250,000 at retirement. What annual interest rate must they earn to reach their goal, assuming they don't save any additional funds? Round your answer to two decimal places.
Your parents are planning to retire in 20 years. They currently have $1,000,000 and they would like to have $5,000,000 when they retire. What annual rate of interest would they have to earn on their $1,000,000 to reach their goal, assuming they save no more money?
10. Susan Robinson is planning for her retirement . She is 30 years old today and would like to have $ 600,000 when she turns 55. She estimates that she will be able to earn a 9 percent rate of return on her retirement investments over time ; she wants to set aside a constant amount of money every year ( at the end of the year ) to help achieve her objective . How much money must Robinson invest at the end of each of the next 25 years to realize her goal of $ 600,000 at the end of that time ? EBK CONTEMPORARY FINANCIAL MANAGEM chapter 5 problem 10p
Bha
Joanne is retiring this year. When she started saving 40 years ago, she planned to invest $1,000 per year in an account that promised her 5% annual rate of return. She diligently saved $1,000 every year, except for a five-year period that started fifteen years ago and ended ten years ago. How much does Joanne have in her account today?
Your parents will retire in 19 years. They currently have $200,000 saved, and they think they will need $1,500,000 at retirement. What annual interest rate must they earn to reach their goal, assuming they don't save any additional funds? Round your answer to two decimal places.
Sandra plans to retire and can receive a lump sum of $26,376 from her pension provider. She decides to invest of the lump sum for 8 years and use the rest for 3 travelling. Her bank account pays 4.99% compound interest per annum. How much interest will Sandra receive from this investment after 8 years? Round your answer to the nearest thousand dollars. %24
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

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