### Retirement Savings Program Calculation**Scenario:**Sally 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 her 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%.**Options:**- ○ \$1,165,997- ○ \$810,620- ○ \$841,270- ○ \$390,000- ○ \$870,030

We need to use future value of ordinary annuity formula to calculate total saving value at the time…

Sally 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 their 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%. 1,165,997 810,620 841,270 390,000 870,030

Sally 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 their 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%. 1,165,997 810,620 841,270 390,000 870,030

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

See similar textbooks

Similar questions

Joanne is retiring this year. When she started saving 40 years ago, she planned to invest $1,000 per year in an account that promised her 5% annual rate of return. She diligently saved $1,000 every year, except for a five-year period that started fifteen years ago and ended ten years ago. How much does Joanne have in her account today?
Sandra plans to retire and can receive a lump sum of $26,376 from her pension provider. She decides to invest of the lump sum for 8 years and use the rest for 3 travelling. Her bank account pays 4.99% compound interest per annum. How much interest will Sandra receive from this investment after 8 years? Round your answer to the nearest thousand dollars. %24
Jane wants to retire with $2,000,000 in her retirement account exactly 35 years from today. If she thinks she can earn an interest rate of 10. percent compounded monthly, how much must she deposit each month to fund her retirement? $432.83 O $493,32 O $526.78 $582.32
Josephine is 20 years old and wants to save $1 million dollars for retirement in 50 years. Assume she invests in a savings account that earns at least the current rate of inflation (6.8%). Determine how much Josephine must save today to reach her retirement goal. $15,247.40 $37,276.71 $65,584.95 $131,169.90
Vijaya
Tariq Ahmed is 25 years old and is saving for her retirement. He is planning on making 40 contributions to her retirement account at the beginning of each of the next 40 years. The first contribution will be made today and the final contribution will be made 40 years from today. The retirement account will earn a return of 12 percent a year. If each contribution he makes is $5,000, how much will be in the retirement account 40 years from now?
A woman is planning for retirement in 30 years and decides she can deposit $6,000 each year on December 31 into a retirement savings plan that she expects will pay 6% interest. In 20 years she also expects to receive a small inheritance of $12,000 that she can also put into her retirement fund. The woman anticipates that her retirement fund will need to last 20 years; she estimates that she will need $60,000 at the end of each year in retirement to cover her living expenses. Her plan is flawed. How much extra does she need to save every year (rounded to dollars and cents) to achieve her goals? (Do not round interim calculations)
Monica has decided that she wants to build enough retirement wealth, if invested at 10 percent per year, to provide her with $4,000 c monthly income for 20 years. To date, she has saved nothing, but she still has 25 years until she retires. How much money does she need to contribute per month to reach her goal? First compute how much money she will need at retirement, then compute the monthly contribution to reach that goal. Note: Do not round intermediate calculations and round your final answer to 2 decimal places. Contribution per month
Elizabeth and William want to begin saving for their child's college education. They estimate that they will need $119000 in twenty years. If they can earn 5% per annum, how much must be deposited at the end of each of the next twenty years to fund the education? O $9549 $9282 O $3599 O $3897
8) Terry Austin is 30 years old and is saving for her retirement. She is planning on making 36 contributions to her retirement account at the beginning of each of the next 36 years. The first contribution will be made today (t = 0) and the final contribution will be made 35 years from today (t = 35). The retirement account will earn a return of 10 percent a year. If each contribution she makes is $3,000, how much will be in the retirement account 35 years from now (t = 35)?
Gina is 25 years old and wants to save $800,000 for retirement in 30 years. Assume she invests in a savings account that earns at least the current rate of inflation (6.5%). Determine how much money Gina must save based on the number of years that she waits to start saving to reach her retirement goal. Years of Waiting to Save Principal Required 0 10 20 30 $800,000
18)Terry Austin is 30 years old and is saving for her retirement. She is planning on making 36 contributions to her retirement account at the beginning of each of the next 36 years. The first contribution will be made today (t = 0) and the final contribution will be made 35 years from today (t = 35). The retirement account will earn a return of 10 percent a year. If each contribution she makes is $3,000, how much will be in the retirement account 35 years from now (t = 35)?

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS