Option 1: Deposit R1000 at the end of each quarter for the first 12 years. At the end of 12years, make no further deposits, but leave the amount accumulated at the end of 12 yearsfor the next 13 years.Option 2: Do nothing for the first 12 years. Then deposit R6000 at the end of cach year forthe next 13 years.If your deposits or investments earn at an interest rate of 6% compounded quarterly, which ofthe following statement is the most accurate? With Option 2, when compared with Option 1,you will be able to accumulateA. R29 863 more at the end of 25 years from nowB. R33 424 more at the end of 25 years from nowC. R37 090 less at the end of 25 years from nowD. R41 526 less at the end of 25 years from nowE. None of the above You are considering two savings plans for your future retirement.

In this we need to calculate the future value of both options.

on 1: Deposit R1000 at the end of each quarte make no further deposits, but leave the amo e next 13 years. on 2: Do nothing for the first 12 years. Then d ext 13 years. eposits or investments earn at an interest rate wing statement is the most accurate? With Op be able to accumulate 863 more at the end of 25 years from now

on 1: Deposit R1000 at the end of each quarte make no further deposits, but leave the amo e next 13 years. on 2: Do nothing for the first 12 years. Then d ext 13 years. eposits or investments earn at an interest rate wing statement is the most accurate? With Op be able to accumulate 863 more at the end of 25 years from now

Personal Finance

13th Edition

ISBN:9781337669214

Author:GARMAN

Publisher:GARMAN

Chapter17: Retirement And Estate Planning

Section17.5: Achieve Your Retirement Savings Goal

Problem 4CC

See similar textbooks

Similar questions

How can you estimate how much you need to save for retirement?
What is the difference between an ordinary annuity and an annuity due? If you were to save money in an annuity, which would you chose and why. Create a retirement plan budget. What will you need to budget if you are retiring. Provide an excel or word table showing your budget.
Explain to a friend or relative how you would use the TVM concept to achieve their desired retirement amount. How much would they need to retire? How would you develop a savings plan using that number? Use Excel to calculate and explain the numbers when posting to the forum. Include the interest rate and investment. Starting amount is 45,000 at age 30 with the retirement age of 67
You are planning to purchase a house in five years and intend to save a fixed amount of money each month for a down payment. What are three important considerations in selecting a savings plan?
I need the answer as soon as possible
When you retire, a key goal is to be able replace about 80% of your pre-retirement income level. Social Security will cover a higher percentage of low earners’ needed replacement income than high earners’ replacement income. True or False
If you are an investor, you will put a sum amount in a bank account and will keep on adding that amount into that account until you want. Once you get to retire from your job you can start getting that amount in the form of constant or variable payouts. This amount considered as: A. Annuity B. Retirement planning C. Accumulate interest
Investment Plans. Use the savings plan formula to answer the following question. At age 28, you set up an IRA (individual retirement account) with an APR of 5%At the end of each month, you deposit $150 in the account. How much will the IRA contain when you retire at age 65? Compare that amount to the total deposits made over the time period.
Do I take the monthly payment and add the interest then divide it to find the total payments? And do I have that total to see how much of the interest? This is to help me with last two?
What are the 5 Best Strategies for Retirement Savings in 2024? and how could one go about this. In the US
Using the Time Value of Money for Retirement Planning. Carla Lopez deposits $3,400 a year into her retirement account. If these funds have an average earning of 9 percent over the 40 years until her retirement, what will be the value of her retirement account?
Characterize potential sources of income available for retirement years by addressing the following: Individual Retirement Account (IRA): describe the difference between a Traditional and a Roth IRA. Indicate how each provide income for retirement and how each are funded (i.e. employee, employer, or both). If you were planning on opening an IRA, indicate which type that you would select and provide your rationale.