You are 25 years old now, and just graduated from college. You got your first job after graduation, and they will pay you $60,039 per year. If you plan to work from age 25 to 66, then retire, and you expect to live until age 100, how much should you save for retirement? Assume you'll earn 10% in your working years and 4% in retirement, also assume you'll want an income of $60,039 per year in retirement. Do not round intermediate calculations. Round your final answer to 2 decimals.

You are 25 years old now, and just graduated from college. You got your first job after graduation, and they will pay you $60,039 per year. If you plan to work from age 25 to 66, then retire, and you expect to live until age 100, how much should you save for retirement? Assume you'll earn 10% in your working years and 4% in retirement, also assume you'll want an income of $60,039 per year in retirement. Do not round intermediate calculations. Round your final answer to 2 decimals.

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 decide you need to generate 4,500 a month from your retirement savings to live comfortably. You are 25 years old, you will retire at 65 years old. You will die at 95 years old. You will leave $2 million to your heirs from this savings. Use 8% annual rate over the entire 70 year analysis. What do you need to save per month to reach your goal? If you wait until you are 35 to start saving, what do you need to save per month to reach your
a. Suppose that between the ages of 22 and 36, you contribute $9000 per year to a 401(k) and your employer contributes $4500 per year on your behalf. The interest rate is 8.5% compounded annually. What is the value of the 401(k) after 14 years? b. Suppose that after 14 years of working for this firm, you move on to a new job. However, you keep your accumulated retirement funds in the 401(k). How much money will you have in the plan when you reach age 65? c. What is the difference between the amount of money you will have accumulated in the 401(k) and the amount you contributed to the plan? Click the icon to view some finance formulas. a. The value of the 401(k) after 14 years is $ (Do not round until the final answer. Then round to the nearest dollar as needed.)
Please help me. I dont understand the steps.
You just retired to find your retirement savings account has reached $1,000,000. The savings account has a rate of 3.1 % compounded continuously. Your lifestyle requires you to live off $50,000 each year to be comfortable. If at retirement age you are 65 years old, how old will you be when the money runs out?
Assume you are now 21 years old and will start working as soon as you graduate from college. You plan to start saving for your retirement on your 25th birthday and retire on your 65th birthday. After retirement, you expect to live at least until you are 85. You wish to be able to withdraw $38,000 (in today's dollars) every year from the time of your retirement until you are 85 years old (i.e., for 20 years). The average inflation rate is likely to be 5 percent. Problem 6.42(a) X Your answer is incorrect. Calculate the lump sum you need to have accumulated at age 65 to be able to draw the desired income. Assume that the annual return on your investments is likely to be 10 percent. (Round answer to 2 decimal places, e.g. 15.25. Round intermediate value to 3 decimal places, e.g. 359400.312. Do not round factor values.) Lump sum amount accumulated at age 65 $ 10463.384
You are thinking of buying a house beside the College which you will rent to students. You expect to receive $2,000 a month in rental income. Your real estate agent estimates that you will be able to sell the property for $250,000 at the end of 46 months. You'd like a return of at least 0.2% per month. What is the most that you should pay for the house, assuming that you will purchase the house today and receive the first (beginning of month) rental payment today. What is the most that you should pay for the property today? (Round to the nearest dollar.)
Your job pays you only once a year for all the work you did over the previous 12 months. Today, December 31, you received your salary of $54,000 and you plan to spend all of it. However, you want to start saving for retirement beginning next year. You have decided that one year from today you will begin depositing 10 percent of your annual salary in an account that will earn 9.4 percent per year. Your salary will increase at 4 percent per year throughout your career. How much money will you have on the date of your retirement 45 years from today?
Vijaya
Your goal is to retire in 20 years. You plan to start on this path by saving $200 a month. If you earn 6% annually (using monthly compounding), how much will you have saved in 20 years? Right before you started saving, you were notified by your auto insurance company that you will receive a discount of $20 a month on your auto premium because of your impeccable driving record. If you chose to put those savings towards your retirement goal each month, how much would your retirement account be worth if you save $220 a month for 20 years with an annual return of 6% (compounded monthly)? Please discuss your thoughts on the impact of saving an additional $20 a month over 20 years.
Your job pays you only once a year for all the work you did over the previous 12 months. Today, December 31, you just received your salary of $60,000 and you plan to spend all of it. However, you want to start saving for retirement beginning next year. You have decided that one year from today you will begin depositing 8 percent of your annual salary in an account that will earn 10 percent per year. Your salary will increase at 3 percent per year throughout your career. How much money will you have on the date of your retirement 40 years from today? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) Future value
Mary would like to save $10,000 at the end of 5 years for a future down payment on a car. a. How much should she deposit at the end of each month in a savings account that pays 1.2%/a, compounded monthly, to meet her goal? b. If you currently have a part-time job, consider your hourly wage. If you do not have a job, use the minimum hourly wage in your jurisdiction. How many hours each month would you have to work, just to make those payments? Write a brief reflection on the advantages and disadvantages to long-term saving for a purchase, compared to borrowing a large sum of money and paying it off over time. Note that interest rates for savings accounts are always lower than interest rates for borrowing.
Assume the total cost of a college education will be $350,000 when your child enters college in 15 years. You presently have $67,000 to invest.What annual rate of interest must you earn on your investment to cover the cost of your child’s college education?

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