To supplement your planned retirement in exactly 42 years, you estimate that you need to accumulate INR 10 lacs by the e from today. You plan to make equal annual end-of-year deposits into an account paying 4 percent annual interest. How large must the annual deposits be to create the INR 10 Lacs amount by the end of 42 years? f you can afford to deposit only INR 5,000 per year into the account, how much will you have accumulated by the end of

To supplement your planned retirement in exactly 42 years, you estimate that you need to accumulate INR 10 lacs by the e from today. You plan to make equal annual end-of-year deposits into an account paying 4 percent annual interest. How large must the annual deposits be to create the INR 10 Lacs amount by the end of 42 years? f you can afford to deposit only INR 5,000 per year into the account, how much will you have accumulated by the end of

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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Similar questions

Assume that you contribute $280 per month to a retirement plan for 25 years. Then you are able to increase the contribution to $480 per month for the next 25 years. Given a 7.2 percent interest rate, what is the value of your retirement plan after the 50 years? Note: Do not round intermediate calculations and round your final answer to 2 decimal places.
If you decide to deposit $480 every year for the next 6 years, with first deposit to be made one year from today and all deposits to be made at the end of each year, in an account that pays 4.62% APR with annual compounding, how much is this account worth in today's dollars?
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.
In planning for your retirement, you would like to withdraw $50, 000 per year for 19 years. The first withdrawal will occur 20 years from today. What amount must you invest today if your return is 15% per year?
To supplement your retirement, you estimate that you need to accumulate $290,000 exactly 41 years from today. You plan to make equal, end-of-year deposits into an account paying 8% annual interest. a. How large must the annual deposits be to create the $290,000 fund by the end of 41 years? b. If you can afford to deposit only $800 per year into the account, how much will you have accumulated in 41 years?
Assume that you contribute $390 per month to a retirement plan for 15 years. Then you are able to increase the contribution to $780 per month for another 25 years. Given a 6.0 percent interest rate, what is the value of your retirement plan after the 40 years?
You believe you will spend $47,000 a year for 13 years once you retire in 26 years. If the interest rate is 7% per year, how much must you save each year until retirement to meet your retirement goal? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Annual savings
Suppose you put $ 475 a month for retirement into an annuity earning 5.75% compounded monthly. If you need $ 500000 to retire, in how many years will you be able to retire? Years =
You will retire in 26 years and can afford to put away 11 % of your salary each year. You make payments at the end of each year, including year 26 30. If your salary over the coming year is $118,930 but you expect it to grow at 4 % per year, and you assume a 7% return (annually) on your 401K, how big will your "nest egg" be at retirement? (Round your answer to three decimal places. For example 1.23450 or 1.23463 will be rounded to 1.235 while 1.23448 will be rounded to 1.234. Please DO NOT do any intermediate rounding and only round the final answer
You are planning to make monthly deposits of $500 into a retirement account that pays 7.7 percent interest compounded monthly. If your first deposit will be made one month from now, how large will your retirement account be in 30 years?
At the moment you don't have any money saved for retirement, but have resolved to start making $425 monthly payments (starting one month from today) into an account expected to earn an effective annual rate of 9.9%. Given that plan, how many years will it take for you to accumulate $2.4 million?
Suppose a 20 year old individual would like to retire at age 65 with a retirement account that pays you $5k monthly for the next 20 years. How much should this person deposit monthly in order to make this possible? Assume that the annual interest rate is 7%, compounded monthly.

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