Question 13You are currently paying $325 in interest on your credit cards annually. If, instead ofpaying interest, you saved this amount every year, how much would you accumulatein a tax-deferred account earning 8% over the next 5 years?Your Answer:Answer

Since its a tax deferred account, no tax will be paid in intermediate years. Instead of paying…

Answered: Question 13 You are currently paying…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Economic Q) You start a savings account (Tax Free) on your 20th birthday – You earn 7% interest on the balance – compounded monthly 1. From age 20 – 35 – You deposit $25 monthly 2. From age 35 – 50, you deposit $100 monthly 3. From age 50 – 65 you deposit $200/month a. How much money will you have at age 65? If you were to draw money out – to use it all (while still getting 7% interest) to age 90 – What would your monthly income be? It's better to show how this can be solved using Excel. Thank you!
Time to accumulate a given sum Personal Finance Problem Manuel Rios wishes to determine how long it will take an initial deposit of $7,000 to double. a. If Manuel earns 8% annual interest on the deposit, how long will it take for him to double his money? b. How long will it take if he earns only 5% annual interest? c. How long will it take if he can earn 10% annual interest? d. Reviewing your findings in parts a, b, and c, indicate what relationship exists between the interest rate and the amount of time it will take Manuel to double his money. a. If Manuel earns 8% annual interest, the amount of time to double his money is years. (Round to two decimal places.) C
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None
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Suppose you have $1,000,000 in savings account when you retire. Your plan is to withdraw $6,000 a month as retirement income from this account. You expect to earn annual interest of 5%, compounded monthly, on your money during your retirement. How many months can you be retired until you run out of money? A-210.83 B-262.59 C-220.27 D-285.14
Required information Problem 10.039 - Retirement account calculations In wisely planning for your retirement, you invest $35,000 per year for 20 years into a 401K tax-deferred account. Assume you make a real retum of 10% per year when the inflation rate averages 3.4% per year. Problem 10.039.a Future dollars in retirement account How many future dollars will you have in the account immediately after your last deposit? You will have $ future dollars in your account immediately after your last deposit.
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If you deposit money today in an account that pays 7% annual interest, how long will it take to triple your money? 13.24 years 1,570.00 years 0.35 years 16.24 years
Intro You decided to save $1,400 every year, starting one year from now, in a savings account that pays an annual interest rate of 5%. Part 1 74440 How many years will it take until you have $100,000 in the account? 1+ decimals Submit
O SYSTEMS OF EQUATIONS AND MATRICES Solving a tax rate or interest rate problem using a system of... Last year, Charlie had $30,000 to invest. He invested some of it in an account that paid 10% simple interest per year, and he invested the rest in an account that paid 8% simple interest per year. After one year, he received a total of $2640 in interest. How much did he invest in each account? First account: 2$ Second account: $ Explanation Check Terms of Use | Privacy Accessibility 2020 McGraw-Hill Education. All Rights Reserved. MacBook Pro
Suppose your parents deposit $4,000 into an account at the end of each year for 11 years. The account earns an annual interest rate of 1.4%. After the final deposit, they move the accumulated savings to a brokerage account and invest in the stock market, where they earn an average annual return of 6.9% for the following 16 years. How much will they have in the account at the end? O a. $131,280 O b. $404,155 O c. $137,311 O d. $296,336 e. $302,138 f. $279,603 g. $496,270 h. $249,511

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Question 13 You are currently paying $325 in interest on your credit cards annually. If, instead of paying interest, you saved this amount every year, how much would you accumulate in a tax-deferred account earning 8% over the next 5 years? Your Answer: Answer