Sharon is planning for her retirement 34 years from now. She plans to invest $5,600 per year for the first 7 years, $7,800 per year forthe next 11 years, and $14,000 per year for the remaining 16 years. All of the investments will be made at the end of the year. If Sharoncan earn 10% annual return on her investments, what will her retirement fund amount to at the end of 34 years? (Round factor values to5 decimal places, eg. 1.25124 and final answer to 2 decimal places, eg. 458,581.25)Click here to view factor tablesAmount of retirement fund$Save for LaterAAttempts: 0 of 1 used Submit Answer

Here's a detailed calculation for better understanding. Sharon's investment schedule:$5,600 per year…

Answered: Sharon is planning for her retirement…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Sarah Allen is 20 years old and plans to make the following investments beginning next year. She will invest $5,300 in each of the next three years and will then make investments of $5,800, $5,900, $6,000, and $6,200 over the following four years. If the investments are expected to earn 12.30 percent annually, how much will Sarah have when she turns 30? (Round answer to 2 decimal places, e.g. 15.25. Do not round factor values.) Future value $
Michael Jones plans to save $5,928 every year for the next eight years, starting today. At the end of eight years, Michael will turn 30 years old and plans to use his savings toward the down payment on a house. If his investment in a mutual fund will earn him 11 percent annually, how much will he have saved in eight years when he buys his house? (Round factor values to 4 decimal places, e.g. 1.5212 and final answer to 2 decimal places, e.g. 15.25.) Future value of investment $
Ms. Lee is thinking about her retirement fund and she still have another 15 years to reach her retirement time. She deposits RM4,800 each year in the investment that give 6% until her retirement day. How much she will have accumulate?
Suleman plans to fund his retirement plan and targeting to get OMR 50,000 at the end of 9th year, with the maximum investment of OMR 1500 at the end of each year for the next 9 years. If Mr. Suleman can earn 12% on his investment, how much will he have at the end of the 9th year? Write you maximum recommendations to Mr. Suleman regarding this investment plan?
Your grandparents would ilke to establish a trust fund that will pay you and your heirs $125,000 per year forever with the first payment 10 years from today. If the trust fund earns an annual return of 2.4 percent, how much must your grandparents deposit today?
Sara decides to set up a retirement fund by depositing $24 at the end of each day for 13 years. How much will she have then, if the interest rate is 6.48% compounded weekly and her account starts with $13487 already deposited?
Heather is planning to retire in 7 years. She will then need an income of $1444 at the beginning of every month for the subsequent 25 years. She is going to make one investment today to provide all of the money she will eventually collect. Her investments will earn 7.33% compounded monthly. How much should she invest today?
Aaron would like to have $2,000,000 when he retires 42 years from now. How much should he set aside each week if his investments can earn 9.1 % ?
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)
Please help me
Ashley invests $250 a month in her 401(k) retirement account, which earns an 8 percent annual return. After 35 years, how much money will she have in the account over and above the amounts she will contribute through the years?
Considering inflation, Joanna is advised that she will need $4,500 a month for living expense once she is retired. She plans for her retirement savings to last 20 years, with the first withdrawal on the date of her retirement. How much will she need to have saved at the start of her retirement, if she invests at 5% compounded semi-annually. And how much will she need to contribute at the end of each month for 25 years to meet this new retirement goal with an initial investment of $50,000?

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS