You are planning to invest $6,000 in an account earning 10% per year for retirement. a. If you put the $6,000 in an account at age 23, and withdraw it 33 years later, how much will you have? b. If you wait 10 years before making the deposit, so that it stays in the account for only 23 years, how much will you have at the end?

You are planning to invest $6,000 in an account earning 10% per year for retirement. a. If you put the $6,000 in an account at age 23, and withdraw it 33 years later, how much will you have? b. If you wait 10 years before making the deposit, so that it stays in the account for only 23 years, how much will you have at the end?

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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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 just turned 23 years old and want to retire when you turn 65. You expect to withdraw $70,000 per year for 25 years during retirement, starting first withdrawal one year after your 65th birthday. You expect to earn a return of 7% on your investments every year. 1. How much retirement saving do you need to have by 65th birthday to support the withdrawals in the next 25 years? Or the same question can be asked differently, what is the present value (as of your 65th birthday) of the withdrawals you expect to make? 2. How much money should you save each year if you make the first deposit one year from your 23th birthday and the last one on 65th birthday?
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?
Suppose you wish to retire 38 years from today. You determined that you need $220,000 per year after you retire, with the first retirement funds withdrawn one year from the day you retire and that you will need to make 30 such withdrawals. Assuming that you can earn 5% per year on your retirement funds for the next 70 years. C. How much is left in your account after you make your 22nd withdrawl?
You are planning to invest $2,000 in an account earning 12% per year for retirement. a. If you put the $2,000 in an account at age 23, and withdraw it 36 years later, how much will you have? b. If you wait 10 years before making the deposit, so that it stays in the account for only 26 years, how much will you have at the end? a. If you put the $2,000 in an account at age 23, and withdraw it 36 years later, how much will you have? In 36 years you would have $. (Round to the nearest cent.)
You would like to save $250,000 for retirement. If you are planning to retire 30 years from now, how much should you deposit each month into an account that pays 7.2% interest compounded monthly? What is the total interest earned? m
You want to be able to withdraw $50,000 from your account each year for 25 years after you retire. You expect to retire in 15 years. If your account earns 7% interest, how much will you need to deposit each year until retirement to achieve your retirement goals?
You are saving for retirement. To live comfortably, you decide you will need to save $3,000,000 by the time you are 65. Today is your 29th 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 10%, how much must you set aside each year to make sure that you will have $3,000,000 in the account on your 65th birthday?
You are saving for retirement. To live comfortably, you decide you will need to save $2,500,000 by the time you are 65. Today is your 32nd 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 $ 2,500,000 in the account on your 65th birthday? The amount to deposit each year must be $
you have decided to begin saving for retirement. you will deposit $800 in a bank account today. than you will deposit an additional $800 every following year for 29 years (an annuity due). if your bank pays 3.73% interest, how much will you accumulate in the account at the end of 30 years
You are saving for retirement. To live comfortably, you decide you will need to save $2 million by the time you are 65. Today is your 26th 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 4%, how much must you set aside each year to make sure that you will have $2 million in the account on your 65th birthday?

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