A newscaster earns $32,400 and wants to invest 10% of his/her monthly salary to save for retirement in 22 years. If he/she invests this money at 4% compounded monthly, how much money will he/she have at retirement? a) How much will be saved each year? $ b) What will be the monthly deposit? $ c) What will be the amount in the account after 22 years? $

A newscaster earns $32,400 and wants to invest 10% of his/her monthly salary to save for retirement in 22 years. If he/she invests this money at 4% compounded monthly, how much money will he/she have at retirement? a) How much will be saved each year? $ b) What will be the monthly deposit? $ c) What will be the amount in the account after 22 years? $

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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You are 30 years old today. You want to retire at the age of 55. You expect to live until age 90. You would like to have a monthly income of $9,000 per month in retirement. How much do you have to save per month during your working years in order to achieve your retirement goal? Assume end of period payments. Assume an annual interest rate of 3.5% in retirement and 5% during your working life. How much do you have to save per month during your working years in order to achieve your retirement goal? $ (Round to the nearest cent.)
Darnell Johnson wants to know if he can retire in 35 years at age 60, when he plans to do a lot of fishing. Assume the deposit into his retirement account averages $3800 at the end of each year and that the funds earn 6% per year. find amount of annuity and the interest earned.
You want to be able to withdraw $45, 000 from your account each year for 25 years after you retire. You expect to retire in 15 years. If your account earns 9% interest, how much will you need to deposit each year until retirement to achieve your retirement goals?
You decide to make monthly payments into a retirement fund earning 4.75% compounded monthly. Note: Payments are made at the end of each period.
You deposit $470 each week into an account earning 2.3% interest compounded weekly. a) How much will you have in the account in 35 years? b) How much total money will you put into the account? c) How much total interest will you earn?
You currently have a balance of $200,000 in your retirement account. You expect to contribute $7,50o to your retirement account at the end of each year for the next 30 years and your employer will match your contributions; thus, the annual end- of-year contributions to your retirement account will be $15,000. If you earn 8% on your retirement account, how much money will you have in your account when you retire in 30 years? You have a 4-year-old daughter and want to have $120,000 in her college fund when she starts college. You expect to earn a 7% return on her college-fund investments. If you want to make 14 equal-sized end-of-year deposits into your daughter's college fund, how much do you need to deposit each year to have $120,000 when she starts college? $ %24 %24
Calculate the amount of money you would be saving for a month by no longer spending $10. Please show your work. If you were to retire at 65, find the number of years left for you to retire. Show calculations. If you were to invest the monthly savings (every month) in an account that gives you 7% interest compounded monthly, calculate the amount of money you would have in your retirement account (at age 65) by making this one change in your lifestyle. Show all the steps.
You deposit $450 each month into an account earning 8% interest compounded monthly. a) How much will you have in the account in 30 years?b) How much total money will you put into the account?c) How much total interest will you earn?
You have just made your first $5,000 contribution to your retirement account. Assume youearn a return of 10 percent per year and make no additional contributions.a. What will your account be worth when you retire in 45 years?b. What if you wait 10 years before contributing?c. After calculating parts a and b, what is the lesson learned?
If a nurse invests $6,000 at the end of each year in her retirement account at 5% annual rate of return, what would her retirement account be worth if she retires in: (use spreadsheet)a. 20 yearsb. 30 yearsc. 35 yearsd. What if she deposits the $6,000 at the beginning of each year for 25 years?
At 24, you finish college and are fortunate enough to have a job waiting for you. Your first job has a starting salary of $75,000 per year. This salary is expected to increase by $5,000 each year. You decide to start saving for retirement right away. Each year you invest 5% of the year’s salary in an account that earns 10% interest, compounded yearly. For simplicity, assume the deposit is made at the END of each year (so if age 24 is t = 0, then the first deposit will be at age 25). If you continue to save in this manner, how much will be in your retirement account immediately after you make the deposit at age 45?

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