Two friends, Alysha and Betty, are planning for their retirement. Both are 20 years old and plan on retiring in 40 years with$1,000,000 each. Betty plans on making annual deposits beginning in one year (total of 40 deposits) while Alysha plans on waitingand then depositing twice as much as Betty deposits.If both can earn 4.20 percent per year, how long can Alysha wait before she has to start making her deposits? (Round answer to 2decimal places, e.g. 125. Do not round your intermediate calculations.)Alysha can wait foryears

Period of deposit=n=40yearsInterest rate=r=4.2%Future value required=$1000000Alysha deposit=2 x…

Two friends, Alysha and Betty, are planning for their retirement. Both are 20 years old and plan on retiring in 40 years with $1,000,000 each. Betty plans on making annual deposits beginning in one year (total of 40 deposits) while Alysha plans on wai and then depositing twice as much as Betty deposits. If both can earn 4.20 percent per year, how long can Alysha wait before she has to start making her deposits? (Round answer decimal places, e.g. 125. Do not round your intermediate calculations.) Alysha can wait for years

Two friends, Alysha and Betty, are planning for their retirement. Both are 20 years old and plan on retiring in 40 years with $1,000,000 each. Betty plans on making annual deposits beginning in one year (total of 40 deposits) while Alysha plans on wai and then depositing twice as much as Betty deposits. If both can earn 4.20 percent per year, how long can Alysha wait before she has to start making her deposits? (Round answer decimal places, e.g. 125. Do not round your intermediate calculations.) Alysha can wait for 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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Sherry has a goal of retiring with $427,480 by making weekly deposits into an investment account whose annual interest rate is 1.1%. If she will retire in 25 years, how much interest will she earn?
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lirme lefr Hanan is 55 years old now and she plans to retire at the age of 60 years old, 5 years from now. He wishes to receive $30,000 at the end of each year for 10 years after the age of 60. Hanan plans to move to a retirement home once she is 70 years old and she is not concerned with any cash flow atter the age of 70. Assume a 10% rate of return/discount rate throughout this question. How large a fund will Hanan need when she retires in 5 years (at age 60) to provide the 10-year, $30,000 retirement annuity? Choose. How much money should Hanan have today (at age 55) as a single amount to provide the 10-year, $30,000 retirement annuity? Choose. At what age Hanan should have invested $10,000 in order to achieve her retirement goal? ( assume a 10% rate of return) Choose.
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