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.
Q: suppose you want to have $700,000 for your retirement in 35 years. your account earns 8% How much…
A: Annuity- refers to a series of periodic payments made at equal time intervals. This financial…
Q: Assume that you are 30 years old today, and that you are planning on retirement at age 65. Your…
A: First contribution amount = Current Salary * Contribution % = 41000 * 8% = $3280
Q: You deposit $10,000 in a retirement account today at 5.8% interest with annual compounding. How much…
A: Future value = Present Value×[1+Periodic interest rate]^n Where, n = number of periods = 28…
Q: a) How much is in your account on retirement? b) Suppose you set up your account as a perpetuity on…
A: “Since you have posted a question with multiple subparts, we will solve the first three subparts for…
Q: When you retire, you plan to draw $50,000 per year from your retirement accounts, which will be…
A: Annuity is the no. of payments which are equal in size and made in equal interval of time. Person…
Q: You would like to have $600,000 when you retire in 40 years. How much should you invest each quarter…
A: Here, To Find: Part a). Amount of deposit each quarter =? Part b). Total money deposited into the…
Q: Assume you decide to make weekly deposits of $100 into a savings account over the next 30 years.…
A: given, A = $100 q ( payment frequency) = 52 m ( compounding frequency) = 365 t ( number of periods)…
Q: Suppose you want to have $600,000 for retirement in 25 years. Your account earns 6% interest. How…
A: Using excel PMT function = PMT(rate,nper,pv,fv)
Q: Assume that you are 30 years old today and that you are planning on retirement at age 65. Your…
A: Given: Particulars Amount Years 30 Retirement age 65 Current salary $45,000 Growth rate…
Q: If you save 400 per month for retirement in an account that earns 8% interest per year, compounded…
A: Given information: Monthly saving $400 Interest rate 8% Number of years is 36
Q: how much money will be in the account? How much of it is interest?
A: Annuity payments are the fixed periodic payments that an investor or depositor makes into an…
Q: Assume you put $400 per month into a retirement account for 14 years, and the account has an APR of…
A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: You have just made your first $1,500 contribution to your retirement account. Assume you earn a…
A: FV = PV(1 + r)t FV= Future Vale PV = Present Value r= rate of interest t = time in years
Q: You have just made your first $4,300 contribution to your retirement account. Assume you earn a…
A: We need to use the concept of time value of money to solve the question. According to the concept of…
Q: Suppose you want to have $700,000 for retirement in 25years. Your account earns 9% interest. a) How…
A: In this we need to calculate the future value factor monthly and than calculate the monthly payment…
Q: How much should you deposit at the end of each month into an investment account that pays 9%…
A: The future value of an annuity is the future worth of a series of investments at a certain rate and…
Q: Suppose you want to have $600,000 for retirement in 20 years. Your account earns 4% interest. How…
A: The future value of the annuity is the total value of all the payments which is occurred regularly…
Q: Suppose you are 30 years old and would like to retire at age 60. Furthermore, you would like to…
A: Annuity means a series of finite number of payments which are equal in size and made in equal…
Q: You want to begin saving for your retirement. You plan to contribute $12,000 to the account at the…
A: The future value of the annuity is the future worth of a cash flow series at a certain rate of…
Q: You deposit $825 today in a savings account that pays 3.5% interest, compounded annually. How much…
A: Future value is the value of current value at a specified interest rate for given period. The…
Q: You deposit $5000 each year into your retirement account, starting in one year. If these funds earn…
A: Annual deposit = $ 5000 Annual interest rate = 5% Number of annual deposits = 27
Q: Suppose that you place $1,000 in a bank account each year for the next 20 years. How much would be…
A: Future value of annuity due can be calculated by using this equation Future value of annuity due…
Q: Suppose you have decided to put $200 at the end of every month in a savings account that credits…
A: Future value of annuities includes the amount being deposited and amount of compounding interest…
Q: Today is your 23rd birthday. Your aunt just gave you $1,000. You have used the money to open up a…
A: Future value: The future value is the amount that will be received at the end of a certain period.…
Q: You have begun a 401k at work, contributing $1,000 at the end of each year. How much is your account…
A: The worth of an account in the future can be calculated using the FV function in Excel.
Q: How much will you have in accumulated savings 20 years from now if you deposit $2,000 at the end of…
A: Period = 20 Years Year end deposit = $ 2000 Growth rate = 2% Interest rate = 5%
Q: You would like to have $650,000 when you retire in 40 years. How much should you invest each quarter…
A: a. GIVEN, future value (FVA) = $650,000 n = 40 m =4 rate of interest (r) = 3.6% applying the formula…
Q: Suppose you want to have $300,000 for retirement in 35 years. Your account earns 10% interest. a)…
A: A study that proves that the future worth of the money is lower than its current value due to…
Q: Suppose that each week, you deposit $43 into a savings account whose annual rate is 1.8% with weekly…
A: We need to use future value of annuity formula to calculate balance of account after 14 years. FV…
Q: You want to accumulate $1,250,000 prior to retirement. If you can earn 10% per yr. and have the…
A: RATE (10%/12) 0.833% TIME PERIOD (30 years * 12 months) 360 PRESENT VALUE $0 FUTURE VALUE…
Q: You decide to make monthly payments into a retirement fund earning 4.75% compounded monthly. Note:…
A: We will apply the formula for calculating the future value of the money so that we can calculate the…
Q: deposits
A: Introduction: The term annuity refers to series of payments which are made at intervals. Examples of…
Q: Suppose you have decided to put $500 at the beginning of every month in a savings account that…
A: Monthly deposit (m) = $500 Monthly interest rate (r) = 0.00416666666666667 (i.e. 0.05 / 12) Number…
Q: If you deposit $250 each month into an individual retirement account (IRA) that earns 4.8% interest…
A: We can use advance calculators or Excel to find the future value asked in the question.
Q: You want to be able to withdraw $35,000 from your account each year for 25 years after you retire.…
A: Given Information:- in the question, you want to withdrawal $35000 each year from you bank account…
Q: If you save $500 per quarter for retirement in an account that earns 8% interest per year,…
A: Retirement planning wherein a fixed amount is saved for a definite period to reap the benefits of…
Q: Assume you put $400 per month into a retirement account for 14 years, and the account has an APR of…
A: (Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the…
Q: Suppose you want to have $800,000.00 for retirement in 30 years. You plan to make regular monthly…
A: Monthly deposit It is the minimum value a person will deposit in an account every month. It is the…
Q: You deposit $100 in a savings account today, and this account accrues interest compounded annually…
A: Compounding is the power of increasing the amount of investment by adding interest in principal and…
Q: Suppose you want to have $800,000 for retirement in 20 years. Your account earns 6% interest. How…
A: Solution:- When an equal amount is deposited each period, it is called annuity. Future value of…
Q: when you retire 40 years from now you plan to make 10 annual withdrawals from your savings accounts…
A: The present value is calculated by multiplying all future cash flows by present value factor using…
Q: Suppose you have estimated that you will need $2,500 per month in your retirement to meet your…
A: The present value is the value of the sum received at time 0. It is the current value of the sum…
Q: Suppose that you would like to have $25,000 to use as a down payment for a home in five years by…
A: An Annuity is a continuous flow of systematic timely cash flows made or received for a stipulated…
Q: Suppose you are 35 years old and would like to retire at age 65. Furthermore, you would like to have…
A: Future value is amount that an investment will become after a certain period of time. It will…
Q: Suppose you want to have $700,000 for retirement in 20 years. Your account earns 10% interest. How…
A: Future value (FV) = $ 700,000 Period = 20 Years Number of monthly payments (n) = 20*12 = 240…
Q: If you deposit $100 today and $200 in two years in an account that earns 10% annual interest, how…
A:
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.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
- You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years. Which table will help you determine the value of your account at the end of 12 years? A. future value of one dollar ($1) B. present value of one dollar ($1) C. future value of an ordinary annuity D. present value of an ordinary annuityYou are saving for retirement. You deposit $225 each month at 3.25% annually interest for 25 years. According to your careful calculations, at the end of 25 years, you should have $103,934.31. How much did you contribute, in total to the retirement account? How much total interest did you earn?After retirement, you expect to live for 25 years. You would like to have a $95,000 income each year. The annual interest rate is 9 percent per year. Required: Calculate the amount of savings you have in your retirement account to receive this income. A) Assume that the payments start on the day of your retirement. B) Assume that the payments start one year after the retirement.
- After retirement, you expect to live for 25 years. You would like to have a $95,000 income each year. The annual interest rate is 9 percent per year. Required: Calculate the amount of savings you have in your retirement account to receive this income. 1 Assume that the payments start on the day of your retirement. 2.Assume that the payments start one year after the retirement.Suppose that starting at age 25, you make steady contributions to a retirement account (with initial balance 0). What should your yearly contribution be if you want to have a balance of $815,000 after 40 years? Assume your account will earn 7% interest, compounded continuously. (Round your answer to the nearest dollar.)Suppose you are 30 years old and would like to retire at age 60. Furthermore, you would like to have a retirement fund which you can draw an income of $1250,00 per year- forever! How much would you need to deposit each month to do this? Assume a constant APR of 6% and that compounding and payment periods are the same. To draw $125000 per year there must be $____ in your saving account when you retire.
- You deposit $4000 into a retirement account each year. The account pays 8℅ interest. How much will you have in 25 years when you retire?You would like to save $250,000for retirement. If you are planning to retire 30 years from now, how much should you deposit each month into an account that pays 7.2% interest compounded monthly? What is the total interest earned?For 40 years, you invest $200 per month at an APR of 4.8% compounded monthly, then you retire and plan to live on your retirement nest egg. a) How much is in your account on retirement? b) Suppose you set up your account as a perpetuity on retirement. What will your monthly income be? (Assume that the APR remains at 4.8% compounded monthly.) c) Suppose now you use the balance in your account for a life annuity instead of a perpetuity. If your life expectancy is 21 years, what will your monthly income be? (Again, assume that the APR remains at 4.8% compounded monthly.) d) Compare the total amount you invested with your total return from part c. Assume that you live 21 years after retirement.
- 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.Calculate how much you will have to save each month between now and then to have $300,000 in your retirement account when you retire at 65, assuming a rate of return of 5% per year? (Show your final calculations for saving at retirement, saving periods, interest rate, and saving deposit/month)You currently have $4,395.00 in a retirement Savings account that earns an annual return of 8.02%. You want to retire in 46.0 years with 1,000,000. How much more do you need to Save at the end of every year to reach your retirement goal?