Michelle is 25 years old and has decided to start a retirement program. Beginning in exactly one year, she will save $15,000 per year for 30 consecutive years to support theirretirement. When she reaches retirement at age 55, which one comes closest to how much she will have saved for her retirement? Assume the rate of 4%.1000@390,0001,165,997870,030810,620841,270

Time period is 30 years Annual savings are $15,000 Interest rate is 4% To Find: Amount saved for…

Michelle is 25 years old and has decided to start a retirement program. Beginning in exactly one year, she will save $15,000 per year for 30 consecutive years to support thei retirement. When she reaches retirement at age 55, which one comes closest to how much she will have saved for her retirement? Assume the rate of 4%. 390,000 1145 907

Michelle is 25 years old and has decided to start a retirement program. Beginning in exactly one year, she will save $15,000 per year for 30 consecutive years to support thei retirement. When she reaches retirement at age 55, which one comes closest to how much she will have saved for her retirement? Assume the rate of 4%. 390,000 1145 907

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

Imagine you are a financial advisor to Valerie VanNess. Ms. VanNess wants to retire in 25 years. She wants to start saving an annual amount at the end of each year until she retires. She expects to live for another 20 years after she retires. During retirement she wants to withdraw $15,000 at the start of each year from a savings account. She can earn 10% per year on balances in this savings account a. How much will Ms. VanNess have to deposit in the savings account at the end of each year for the next 25 years, if the interest rate is 10%, compounded annually? b. How would the yearly deposits be changed if Ms VanNess expects her cat to live for another five years after her death, and she wants to leave an amount in an account that will be used to pay the cat sitter $5500 at the start of each year, for those five years. (Draw a new timeline, or add to your timeline above).
•Edith plans to retire in 25 years, and she wants to withdraw $200,000 per year for 35 years. Her account earns 6 percent compounded annually. How much must she save each year to meet her retirement objective? answer is 52,851.09 if possible , please use BAII plus calculator
Emily is trying to decide between investing $1,000 or $1,500 at the beginning of each year for the next 40 years into a retirement account yielding 10.78%. After 40 years, how much extra money will Emily have in her IRA if she invests $1,500 annually instead of $1,000 annually? $4,016,726.94 B) $4,052,810.53 $273,849.26 $30,020.95
Your friend has just celebrated her 30th birthday and accepted her first job. She must now decide how much money to put into her retirement plan. Assume that every dollar in the plan is expected to earn a return of 8% p.a. and that your friend cannot make any withdrawals until she retires on her 65th birthday. After that point, she can make withdrawals as she wishes. She plans to live to 100 years and she plans to work until she turns 65. She estimates that to live comfortably in retirement, she will need $120,000 every year starting at the end of the first year of retirement and ending on her 100th birthday. Assume that she starts the contribution to her retirement plan on her 31st birthday and that she will contribute the same amount to the plan at the end of every year that she works. The amount of money she would need to contribute every year to fund her retirement is closest to: a. $7,475. b. $8,116. c. $8,207. d. $8,817.
A 40-year-old woman decides to put funds into a retirement plan. She can save $1,000 a year and earn 7 percent on this savings. How much will she have accumulated if she retires at age 65? Use Appendix C to answer the question. Round your answer to the nearest dollar.$ At retirement how much can she withdraw each year for 20 years from the accumulated savings if the savings continue to earn 7 percent? Use Appendix D to answer the question. Round your answer to the nearest dollar.$
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
Craig and sally just got married .they want to have $750.000 in a retirement account in 40 years . How much should they deposit at the end of every 6 months sat 2% compounded semiannually in order to reach this goal?
Your friend is celebrating her birthday and wants to start saving for retirement. She has provided you with the following information: Years until retirement: 30 Amount to withdraw each year in retirement: $120,000 Years to withdraw in retirement: 12 Interest rate while saving: 9% Interest rate in retirement: 6% Saved today (nest egg): $25,000 The first deposit will be made one year from today, and the last deposit will be made on the day she retires. Her first withdrawal will not occur until one year after she retires, and she plans to spend her entire nest egg. Calculate the amount she must deposit each year to reach her retirement goal. (Round to 2 decimals)
Sharon has worked for a company with a retirement program, and today is retiring from her job with the amount of $157000 in her retirement account. She decides to withdrawal an equal amount from this account, once a year, beginning immediately, and ending 25 years from today (for a total of 26 payments). If the interest rate is 6.75%, solve for the annuity amount such that she uses up her full accumulation. $ Place your answer in dollars and cents. Do not use a dollar sign or comma as part of your answer. For example, an answer of fifty four point three eight would be placed as 54.38.
Van, age 40, is starting his savings plan this year by putting away $2,200.00 at the end of every year until he reaches age 65. He will deposit this money at his local savings and loan at an interest rate of 6%. The compounding factor is 36.780. Based on the information provided, by the time Van turns 65, he will have $________________________________ Amy, age 45, is starting her savings plan this year by putting away $2,200.00 at the end of every year until she reaches age 65. She will deposit this money at her local savings and loan at an interest rate of 6%. The compounding factor is 23.270. Based on the information provided, by the time Amy turns 65, she will have$_________________________________ Van started his investment program five years earlier than Amy and invested a total of $______________________ during those extra years. By the time Van turns 65, he will have accumulated $_______________________ more than Amy.
Mr. X to retire at age 65 and believes that he can live comfortably with an annual pension of $76,000, to be withdrawn at the beginning of each year in his retirement. Suppose his pension account will generate 9% of annual interest rate, and suppose Mr.X believes tgat he will live to 100. In order to have sufficient money for his retirement , what is the minimum amount that Mr. X must have saved up in his pension account at the time of his retirement at of 65?
You annually invest $2,000 in an individual retirement account (IRA) starting at the age of 30 and make the contributions for 15 years. Your twin sister does the same starting at age 35 and makes the contributions for 25 years. Both of you earn 7 percent annually on your investment. What amounts will you and your sister have at age 60? Use Appendix A and Appendix 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 60?-Select-You haveYour sister hasItem 3 the larger amount.

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