You are 65 years old and about to retire. You have $100,000 saved in a retirementaccount and would like to withdraw it in equal annual amounts so that nothing is leftafter 14 years. How much can you withdraw each year if the account earns 4%interest each year?Your Answer:Answer

The present value of the amount represents the current value of the future cash flows. The…

Answered: You are 65 years old and about to…

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 have just made your first $10,000 contribution to your individual retirement account. Assume you earn an annual rate of return of 12 percent compounded quarterly and make no additional contributions. What will your account be worth when you retire in 50 years?Note: Do not round intermediate calculations and round your answer to 2 decimal Blaces, e.g., 32.16. You need $20,000 to go on your dream vacation to South Africa. If you save $5,000 today in an account at 10% interest compounded annually, how long will you have to wait to go on your dream vacation?Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.
I am 25 years of age.
Suppose you want to have $700,000 for retirement in 30 years. Your account earns 10% interest. a) How much would you need to deposit in the account each month? $ b) How much interest will you earn? $ es
Today is your 22nd birthday and you have just started your first job out of college. You decide that you will put $10,000 into a retirement account every year on your birthday until you retire. The first $10,000 deposit will happen on your 23rd birthday (in one year from today) and your last deposit will be on your 65th You plan to retire on your 65th birthday. If your investment earns an 8.5% annual return, how much will you have saved up when you retire?
Suppose you want to have $800,000 for retirement in 25 years. Your account earns 9% interest.a) How much would you need to deposit in the account each month?$b) How much interest will you earn? $
You want to retire at age 65. You decide to make a deposit to yourself at the end of each year into an account paying 3%, compounded annually. Assuming you are now 25 and can spare $1,400 per year, how much will you have when you retire at age 65? (Round your answer to the nearest cent.)_____$
Suppose you want to have $500,000 for retirement in 25 years. Your account earns 9% interest. a) How much would you need to deposit in the account each month? b) How much interest will you earn?
You would like to have $550,000 when you retire in 40 years. How much should you invest each quarter if you can earn a rate of 6.4% compounded quarterly? a) How much should you deposit each quarter? b) How much total money will you put into the account? c) How much total interest will you earn?
You have decided to start a savings plan for your retirement. You plan to make an annual deposit of $50,000 each year for the next 6 years. The first deposit to be made one year from today. The bank pays a nominal interest rate of 5% annually. How much your savings account with the bank be if you leave the money in the bank to be withdrawn all in 19 years from today? Round to the nearest $0.01. DO NOT use the $sign. Do not use commas to separate thousands. For example if you obtain $1,433.728 then enter 1433.73; if you obtain $432 then enter 432.00 Your Answer: Answer
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

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You are 65 years old and about to retire. You have $100,000 saved in a retirement account and would like to withdraw it in equal annual amounts so that nothing is left after 14 years. How much can you withdraw each year if the account earns 4% interest each year? Your Answer: Answer