retire at age 60. Furthermore, you would like to have a retirement fund from which you can draw an income of $50 comma 000 per yeardash forever! How much would you need to deposit each month to do this? Assume a constant APR of 7% and that the compounding and payment periods are the same.

retire at age 60. Furthermore, you would like to have a retirement fund from which you can draw an income of $50 comma 000 per yeardash forever! How much would you need to deposit each month to do this? Assume a constant APR of 7% and that the compounding and payment periods are the same.

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

Suppose you want to have $800,000 for retirement in 25 years. Your account earns 9% interest.a) How much would you need to deposit in the account each month?$b) How much interest will you earn? $
Suppose that you save for retirement by contributing the same amount each month from your 23 rd birthday until your 65th birthday, in a retirement account that pays a steady return of 7.5 percent compounded monthly? Every month you save $100.
To prepare for retirement, you are going to deposit money into a pension plan account every month for the next 25 years. The pension plan has a 6.96% annual rate that compounds monthly. How much money will be in the account after 25 years if for the next 25 years you deposit $465.86 into the pension plan every month? First find the interest rate per period to four decimal places: i = Next find the total number of deposits: n = Finally, find the total amount of money in the account after 25 years: FV =
Assume that you contribute $220 per month to a retirement plan for 25 years. Then you are able to increase the contribution to $440 per month for another 25 years. Given a 9.0 percent interest rate, what is the value of your retirement plan after the 50 years? Note: Do not round intermediate calculations and round your final answer to 2 decimal places.
Suppose you want to have $500,000 for retirement in 25 years. Your account earns 9% interest. a) How much would you need to deposit in the account each month? b) How much interest will you earn?
Assume that you contribute $300 per month to a retirement plan for 15 years. Then you are able to increase the contribution to $500 per month for the next 25 years. Given a 9.0 percent interest rate, what is the value of your retirement plan after the 40 years? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Future value of multiple annuities $ 51,158 72
Assume that you contribute $280 per month to a retirement plan for 25 years. Then you are able to increase the contribution to $480 per month for the next 25 years. Given a 7.2 percent interest rate, what is the value of your retirement plan after the 50 years? Note: Do not round intermediate calculations and round your final answer to 2 decimal places.
You would like to have enough money saved to receive a $90,000 per year perpetuity after retirement. The annual interest rate is 8 percent. Required: How much would you need to have saved in your retirement fund to achieve this goal? a) Assume that the perpetuity payments start on the day of your retirement. b) Assume that the perpetuity payments start one year from the date of your retirement.
In planning for your retirement, you would like to withdraw $50, 000 per year for 19 years. The first withdrawal will occur 20 years from today. What amount must you invest today if your return is 15% per year?
To supplement your retirement, you estimate that you need to accumulate $290,000 exactly 41 years from today. You plan to make equal, end-of-year deposits into an account paying 8% annual interest. a. How large must the annual deposits be to create the $290,000 fund by the end of 41 years? b. If you can afford to deposit only $800 per year into the account, how much will you have accumulated in 41 years?
Assume that you contribute $390 per month to a retirement plan for 15 years. Then you are able to increase the contribution to $780 per month for another 25 years. Given a 6.0 percent interest rate, what is the value of your retirement plan after the 40 years?
Suppose you want to have $600,000 for retirement in 25 years. Your account earns 10% interest. How much would you need to deposit in the account each month?

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