You contribute $1,500 annually to a retirement account for seven years and stop making payments at the age of 45. Your twin brother (or sister . . . whichever applies) opens an account at age 45 and contributes $1,500 a year until retirement at age 65 (20 years). You both earn 9 percent on your investments. How much can each of you withdraw for 20 years (that is, ages 66 through 85) from the retirement accounts? Use Appendix A, Appendix C, and Appendix D to answer the question. Round your answers to the nearest dollar. You can withdraw $ Your twin can withdraw $

You contribute $1,500 annually to a retirement account for seven years and stop making payments at the age of 45. Your twin brother (or sister . . . whichever applies) opens an account at age 45 and contributes $1,500 a year until retirement at age 65 (20 years). You both earn 9 percent on your investments. How much can each of you withdraw for 20 years (that is, ages 66 through 85) from the retirement accounts? Use Appendix A, Appendix C, and Appendix D to answer the question. Round your answers to the nearest dollar. You can withdraw $ Your twin can withdraw $

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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How much must you deposit each year into your retirement account starting now and continuing through year 10 if you want to be able to withdraw $90,000 per year forever, beginning 29 years from now? Assume the account earns interest at 14% per year. The amount to be deposited is determined to be $________ .
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 $1,400 per year, how much will you have when you retire at age 65? (Round your answer to the nearest cent.)_____$
At age 24, someone sets up an IRA (individual retirement account) with an APR of 4%. At the end of each month he deposits $100 in the account. How much will the IRA contain when he retires at age 65? Compare that amount to the total deposits made over the time period. After retirement the IRA will contain $ ??
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?
Please answer my question
Assuming you made all the weekly payments for 12 years and left the money in the account without making any additional payments or withdrawals, how much did you pay into your retirement account over the 47 years? Assuming you made all the weekly payments for 12 years and left the money in the account without making any additional payments or withdrawals, how much interest did you earn over the 47 years?
You deposit your inheritance of $500,000 into an account earning 5.3% interest per year compounded monthly. You intend to withdraw a fixed amount monthly for 16 years. What amount can you withdraw monthly in order to empty the account in the 16 years? Give the answer to 2 decimal places, and do not use the $ sign in the answer box. Blank 1. Calculate the answer by read surrounding text. dollars
You are the beneficiary of a life insurance policy. The insurance company informs you that you have two options for receiving the insurance proceeds. You can receive a lump sum of $400,000 today or receive payments of $16,000 a year for 15 years. You can earn 6 percent on your money. Which option should you take and why?
You have just made your first $4,500 contribution to your individual retirement account. Assume you earn an annual return of 11.3 percent and make no additional contributions. What will your account be worth when you retire in 39 years?
A self employed person deposit $1,250 annually in a retirement account that earns 5.5 percent. What will be the account balance at age 62 if the savings program starts when the individual is age 50? How much additional money will be in the account if the saver defers retirement until age 66 and continue the annual contribution until then? How much additional money will be in the account if the saver discontinues the contributions at age 62, but let's it build up until retirement at age 66?
An investor deposits $100 into his credit union account that pays interest at the rate of 3.25% per year (payable at the end of each year). He leaves the money and all accrued interest in the account for 7 years. How much will he have at the end of the 7 years?
A policyholder wishes to receive $5,000 per month in retirement. They plan to retire at the age of 64, the insurer is guaranteeing a 4% rate of return, and their life expectancy is 86. If they deposit each of the following amounts annually before retiring, at what age do they need to start saving? (A).$10,000 25 years old (technically, 25.60759 years old) (B).$15,000 33 years old (technically, 33.26361 years old) (C).$20,000 38 years old (technically, 38.17201 years old) (D).$25,000 41 years old (technically, 41.64589 years old)

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