You are 30 years old today. You want to retire at the age of 55. You expect to live until age 90. You would lik to have a monthly income of $9,000 per month in retirement. How much do you have to save per month durin 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 s (Round to the nearest cent)

You are 30 years old today. You want to retire at the age of 55. You expect to live until age 90. You would lik to have a monthly income of $9,000 per month in retirement. How much do you have to save per month durin 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 s (Round to the nearest cent)

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

You intend to buy a vacation home in seven years and plan to have saved $50,000 for a down payment. How much money would you have to place today into an investment that earns 8% per year to have enough for your desired down payment?
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?
Suppose you want to have $600,000 for retirement in 25 years. Your account earns 10% interest. How much would you need to deposit in the account each month?
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
2.
You want to retire with at least $1,500,000 in the bank and figure you will continue working for another 40 years. After all of your expenses you can only afford to save $250 a month. What is the lowest interest rate you will need to earn to ensure you meet your retirement goal?
If John wants to retire with $10,000 per month, how much principal is necessary to generate this amount of monthly income if the interest rate is 8%?t $ Read It Need Help?
Retirement Investment Advisors Incorporated, has just offered you an annual interest rate of 6 percent until you retire in 40 years. You believe that interest rates will increase over the next year and you would be offered 6.6 percent per year one year from today. If you plan to deposit $18,000 into the account either this year or next year, how much more will you have when you retire if you wait one year to make your deposit?
You are thinking of retiring. Your retirement plan will pay you either $200,000 immediately on retirement or $280,000 five years after the date of your retirement. Which alternative should you choose if the interest rate is: 0% per year, you should? 8% per year, you should? 20% per year, you should?
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.
You have $500,000 saved for retirement. Your account earns 5.2% interest. How much will you be able to pull out each month, if you want to be able to take withdrawals for 25 years? Round your answer to the nearest cent as needed.

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