Rick deposited $3,300 into an account 14 years ago for an emergency fund. Today, that account is worth $5,930. What annual rate of return did Rick earn on this account assuming no other deposits and no withdrawals?
Q: At the time of her grandsons birth, a grandmother deposits 8,000 in an account that pays 2%…
A: Given, PV=Deposits= $8000 Rate(r)=6.5% (compounded monthly) Monthly rate=2%12=0.001667 No. of…
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A: Future value of money is the amount of deposit done and amount of compounded interest accumulated…
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Q: On January 1, 2019, Alex deposited $2,000 into a savings account that pays interest of 10 percent,…
A: Deposit amount (P) = $2,000 Interest rate (r) = 10% Period (t) = 3 Years
Q: Your grandmother deposited $10,000 in an investment account on the day you were born to help pay…
A: Solution:- An amount deposited today somewhere earns interest. The amount invested in beginning is…
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A: ROTH IRA stands for individual retirement account and wich use to save money for retirement. This…
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A: Future value refers to the value of the current asset at some future date affected by interest and…
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A: Here we have to use the concept of future value to determine the retirement amount. The amount…
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A: Introduction: Future Value refers to the value of investment to be received in the future at a…
Q: Seth starts an IRA (Individual Retirement Account) at the age of 3232 to save for retirement. He…
A: Total Deposits= Monthly deposits * Number of depositsTotal Interest= Future Value - Total Deposits
Q: At age 27, Laura deposited $1000 into an IRA, it earns 7 7/8% compounded monthly.
A: In the given problem we have two sections which are being attended below.
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A: To calculate the contributions Derek needs to make to his retirement account, use the future value…
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A: The future value refers to the future value of all cash flows compounded at interest rate for the…
Q: Frank established
A: A Roth IRA is an individual retirement account under United States law that is generally not taxed…
Q: Obtain today's value of the investment account.
A: The time value of money implies that the cash in hand at present has a higher value than the cash…
Q: Derek plans to retire on his 65th birthday. However, he plans to work part-time until he turns…
A: We will use the concept of time value of money here. As per the concept of time value of money the…
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A: INTRODUCTION Simple interest is calculated by multiplying the interest by the Principal amount.…
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A: Time value of money (TVM) refers to the method used to measure the amount of money at different…
Q: Thirty years ago, your parents opened an investment account with a single deposit of $2,000. They…
A: Investment amount (P) = $2000 Period (n) = 30 Years Accumulated amount (F) = $26,905
Q: how much was in the account immediately after his 35th deposit if: a)the account earned annual…
A: The future value of an investment forecasts the expected value of an investment at a given future…
Q: Rick deposited $3,050 into an account 9 years ago for an emergency fund. Today, that account is…
A: Initial deposit (I) = $3,050 Value today (T) = $3,950 Period (p) = 9 Years Rate of return (r) = ?…
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A: Computation:
Q: At the time of her grandsons birth a grandmother deposits 13,000 in an account that pays 6.5%…
A: PV=Initial deposit = 13000 r=rate=6.5% (compounded monthly) n=21 years Monthly rate=r= 6.5%/12 No…
Q: Six years ago, Gladys opened a retirement account with an initial deposit of $14,000. Each year…
A: The present value refers to the current worth of a sum of money to be received in the future,…
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A: Simple interest is the type of interest where the interest is charged on the principal amount only.…
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A: Variables in the question:At t=0, amount invested=$6100Annual interest=4%Annual deposit (for 16…
Q: Chase starts an IRA (Individual Retirement Account) at the age of 30 to save for retirement. He…
A: Here,Monthly Deposit in IRA is $400Current Age is 30Retirement Age is 65Number of Years for deposits…
Q: Your grandfather put some money in an account for you on the day you were born. You are now 16 years…
A: See below.Explanation:To solve this problem step by step, we can use the formula for compound…
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A: The problem is solved using PV and PMT functions in Excel. PMT is a function in Excel that is used…
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Q: Elijah James is in his early 30s and is thinking about opening an IRA. He can't decide whether to…
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A: This is based on TVM (time value of money) concept. Money deposited in an account today grows in…
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A: $
Q: Elijah James is in his early 30s and is thinking about opening an IRA. He can't decide whether to…
A: An IRA is a short form of an Individual Retirement Account. It is a contribution scheme which allows…
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A: Since you have asked a multiple sub part question, we will answer the first three subparts for you.…
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- Logan starts an IRA (Individual Retirement Account) at the age of 30 to save for retirement. He deposits $400 each month. Upon retirement at the age of 65, his retirement savings is $943,445.01. Determine the amount of money Logan deposited over the length of the investment. Round to the nearest thousand dollars.Grandma Patt has decided to open a savings account for her newborn granddaughter. The savings account pays 3% interest. If Grandma Patt wants there to be $10,000 in the account in 18 years, how much should she deposit today? Assume no other deposits or withdrawals. a) $5,873.95 b) $17,024.33 c) $8,362.17 d) $10,609.23Ten years ago Jim took a mortgage loan of $200,000 to be repaid in 20 equal annual installments of $30,197.34. The bank has told him that they would accept $145,000 today as payment in full for the remainder of the loan. What is the balance on this loan? If we assume that Jim has the money, what interest rate must he earn on alternative investments in order not to accept the bank offer?
- Erik invested $575 at the end of every month in an investment fund that was earning interest at a rate of 4.20% compounded monthly. He stopped making regular deposits at the end of 6 years when the interest rate changed to 6.69% compounded quarterly. However, he let the money grow in this investment fund for the next 4 years. a. Calculate the accumulated balance in his investment fund at the end of 6 years. b. Calculate the accumulated balance in his investment fund at the end of 10 years. c. Calculate the total interest earned over the 10-year period.Two people plan to invest $50,000. Matt is going to invest it in one lump sum and leave it in the account for 25 years to use for retirement. Sarah is going to invest $2000 per year for 25 years and will also use the money in the account for retirement. Is it reasonable to expect that Matt will have more money in his account than Sarah does in 25 years if both accounts earn the same interest?Your grandmother just died and left you $112,500 in a trust fund that pays 6.3% interest. You must spend the money on your college education, and you must withdraw the money in 4 equal installments, beginning immediately. How much could you withdraw today and at the beginning of each of the next 3 years and end up with zero in the account? O a. $32,689.86 O b. $7,087.50 O c. $39,812.95 O d. $30,752.46 Oe. $24,085.01
- Cyrus deposits $744.88 each quarter into an annuity account for his child's college fund. He wishes to accumulate a future value of $75,000 in 18 years. Assuming an APR of 3.6%, how much of the $75,000 will Cyrus ultimately deposit in the account, and how much is interest earned? Round your answers to the nearest cent, if necessary.Your grandfather put some money in an account for you on the day you were born. You are now 16 years old and are allowed to withdraw the money for the first time. The account currently has $5,311 in it and pays an 11% interest rate. a. How much money would be in the account if you left the money there until your 25th birthday? b. What if you left the money until your 65th birthday? c. How much money did your grandfather originally put in the account? a. How much money would be in the account if you left the money there until your 25th birthday? If you left the money there until your 25th birthday, the amount in the account would be $ nearest cent.) (Round to theOn January 1, 1980, your favorite uncle John turned 43 and started saving for his retirement. He invested $18,894.75 each year on January 1 until he turned 62 on 1/1/1999 (20 total deposits). Over the 20 years, he managed to earn an effective annual rate of return of 9.50%, and he assumed he could continue to earn that rate of return until he turned 90. Looking at his account balance, he calculated that he could immediately withdraw $74,050.56 to cover living expenses for 1999. And, going forward, he could withdraw that same amount on January 1 of each year, but adjusted for a 3% inflation. That is, in 2000, he could withdraw $74,050.56 x 1.03 $76,272.08; in 2001, $74,050.56 x 1.032 $78,560.24; etc. He planned on a total of 28 withdrawals, with the last one of $164.487.70 on 1/1/2026 when he turned 89. At that point, the account balance would be zero. 501 On 1/1/2023, right after making his withdrawal for 2023, your uncle decided to become a Tibetan monk. He left you the balance of his…
- 8. Itay began making contributions to a new retirement account on his thirtieth birthday. He made a contribution of $20,000 at the beginning of each year through his sixty-fourth birthday. Starting at age sixty-five and continuing through his eightieth birthday, he made a level withdrawal on his birthday. Find the amount of these withdrawals if they completely exhaust the balance in his account, and the annual effective interest rate is 7% until he is sixty-five, then 6% thereafterElijah James is in his early 30s and is thinking about opening an IRA. He can't decide whether to open a traditional/deductible IRA or a Roth IRA, so he turns to you for help. To support your explanation, you decide to run some comparative numbers on the two types of accounts; for starters, use a 30-year period to show Elijah what contributions of $5,000 per year will amount to (after 30 years) if he can earn, say, 12 percent on his money. Round your answers to the nearest dollar. 1A. traditional IRA $___1B. Roth IRA $ _____ Will the type of account he opens have any impact on this amount?-Select: YES OR NO Assuming that Elijah is in the 25 percent tax bracket (and will remain there for the next 30 years), determine the annual and total (over 30 years) tax savings he'll enjoy from the $5,000-a-year contributions to his IRA. Contrast the (annual and total) tax savings he'd generate from a traditional IRA with those from a Roth IRA. If an answer is zero, enter "0". Round your answers…Andrew deposits $306.06 each month into an annuity account for his child's college fund in order to accumulate a future value of $80,000 in 16 years. How much of the $80,000 will Andrew ultimately deposit in the account, and how much is interest earned? Round your answers to the nearest cent, if necessary.