You are planning to accumulate P2.5M in your personal savings account by the time you retires at 60. The longer you will stalls on getting started, the tougher it will be to meet her objective. Let's assume you are now 25 years old. Create a spreadsheet to complete the following table to show how much you will have to save each year (assuming you waits N years to start saving) to have P2.5M in your account when you are 60. Comment on the pattern you observe in the table given below. Interest rate per year 8% N-5 N= 10 N= 15 4% 12%

You are planning to accumulate P2.5M in your personal savings account by the time you retires at 60. The longer you will stalls on getting started, the tougher it will be to meet her objective. Let's assume you are now 25 years old. Create a spreadsheet to complete the following table to show how much you will have to save each year (assuming you waits N years to start saving) to have P2.5M in your account when you are 60. Comment on the pattern you observe in the table given below. Interest rate per year 8% N-5 N= 10 N= 15 4% 12%

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 plan to retire when you are 67 years old. You plan to start saving money for retirement, via RRSP when you are 25 years old. Your RRSP will pay an average of 7% per year After you retire when you are 68 years old you plan to withdraw $31,000/year for 32 years. How much money would you need to have saved in your bank account by the time you turn 67 so you can receive payments of $31,000/year? Choose the range which is most accurate. O a. $403,000 - $406,000 O b. $406,000 - $409,000 O c. $412,000 - $415,000 d. NONE of the RANGES are CORRECT e. $400,000-$403,000
You just received $225,000 from an insurance settlement. You have decided to set this money aside and invest it for your retirement. Currently, your goal is to retire 25 years from today. How much more will you have in your account on the day you retire if you can earn an average return of 10.5 percent rather than just 8 percent?
You are trying to calculate how much money you should have at retirement. On your 60th birthday you will retire and immediately make your first withdrawal of $4,482.06. You plan to make 24 such withdrawals each year. You plan to continue withdrawing at that level and frequency until you are 90 years old. (Assume beginning of period withdrawals with the first withdrawal on your retirement date and no withdrawal on your final birthday.) During retirement your savings will earn only 3.5% per annum. How much do you have to have saved at retirement to fund these planned withdrawals?
You want to open a savings plan for your future retirement. You are considering two options as follows: Option 1: You deposit Php 1,000 at the end of each quarter for the first 10 years. At the end of 10 years, you make no further deposits, but you leave the amount accumulated at the end of 10 years for the next 15 years. Option 2: You do nothing for the first 10 years. Then you deposit Php 6,000 at the end of each year for the next 15 years. Compare the amount accumulated in Option 1 and Option 2. If your deposits or investments earn on interest rate of 6% compounded quarterly, and you chose Option 2 over Option 1, At the end of 25 years from now, I will accumulate what amount of money?
You decide to make monthly payments into a retirement fund earning 4.75% compounded monthly. Note: Payments are made at the end of each period.
Suppose that you just turned 25, plan to retire at 65, and estimate that you will need $9,049 per month at the end of each month upon retirement for the next 30 years. How much do you need to contribute at the end of each month until you reach age 50? Assume your estimated return is 8.8% EAR, that you have $10,000 already invested, and the funds will continue to earn interest to age 65, even though you will not continue contributing after age 50.
An insurance agent has been attempting to convince you to purchase an savings plan towards your retirement but you are not convinced of its value. After all, you are young, and have many years to prepare for this. He proposes that you save $325 at the beginning of every month for 30 years, in an account that pays 12% annual interest, compounded monthly. Required: a) Calculate the value of your savings at the end of 30 years. Please answer this question showing all working.
You want to start saving for retirement by opening an RRSP account. You have no savings yet but that's okay because you are still young. You plan to retire in 30 years. Upon retirement, you would like to be able to spend $120,000 a year for 20 years. You fund this spending by making beginning of month withdrawals that are the same amount (size) every month. The first withdrawal occurs once you begin your retirement in 30 years. The last withdrawal occurs at the beginning of the last month of your retirement horizon. How much do you need to deposit at the end of each month for the next 30 years in order to achieve your retirement objective? Your RRSP account pays 7.7% p.a. compounded semi-annually during both savings and retirement periods.
Calculate the amount of money you would be saving for a month by no longer spending $10. Please show your work. If you were to retire at 65, find the number of years left for you to retire. Show calculations. If you were to invest the monthly savings (every month) in an account that gives you 7% interest compounded monthly, calculate the amount of money you would have in your retirement account (at age 65) by making this one change in your lifestyle. Show all the steps.
K You are saving for retirement. To live comfortably, you decide you will need to save $3 million by the time you are 65. Today is your 20th birthday, and you decide, starting today and continuing on every birthday up to and including your 65th birthday, that you will put the same amount into a savings account. If the interest rate is 7%, how much must you set aside each year to make sure that you will have $3 million in the account on your 65th birthday? www The amount to deposit each year is $. (Round to the nearest dollar.)
I need help solving the probelm below in excel 8.Your client wants to have $2 million in her retirement account in 20 years. How much should the client deposit in the account at the end of each year to achieve her goal if we assume an annual return of 8%?
You have a financial goal to reach: $1,000,000 when you retire. You are currently 20 years old and you plan to retire at 60yrs old If you can earn 15% return on your retirement account, How much do you need to invest today?

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