You estimate you'll need $100, 000 per year for 25 years starting on your 65th birthday to live on during your retirement. Today is your 50th birthday and you want to make equal deposits into an account paying 9% interest per year, the first deposit today and the last deposit on your 64th birthday. How much must each deposit be? Group of answer choices $49, 380 $33,455 $66, 909 $ 85,840

You estimate you'll need $100, 000 per year for 25 years starting on your 65th birthday to live on during your retirement. Today is your 50th birthday and you want to make equal deposits into an account paying 9% interest per year, the first deposit today and the last deposit on your 64th birthday. How much must each deposit be? Group of answer choices $49, 380 $33,455 $66, 909 $ 85,840

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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Acme Insurance is offering you a perpetuity that will pay you and your heirs $150,000 per year. If you have a required return of 7.5%, what is the most you would pay for this perpetuity? Question 5 options: $2,000,000 $1,000,000 $750,000 $1,750,000 $1,500,000 Previous PageNext Page
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You are planning to make monthly deposits of $70 into a retirement account that pays 11 percent interest compounded monthly. If your first deposit will be made one month from now, how large will your retirement account be in 24 years? Multiple Choice O $93,189.59 O $98,094.30 O $102,999.02 O $1,177,131.62 O $85,826.29
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Many assets provide a series of cash inflows over time; and many obligations require a series of payments. When the payments are equal and are made at fixed intervals, the series is an annuity. There are three types of annuities: (1) Ordinary (deferred) annuity, (2) Annuity due, and (3) Growing annuity. One can find a annuity's future and present values, the interest rate built into annuity contracts, and the length of time it takes to reach a financial goal using an annuity. Growing annuities are often used in the area of financial planning. Their analysis is more complex and often easier solved using a financial spreadsheet, so we will limit our discussion here to the first two types of annuities. The future value of an ordinary annuity, FVAN, is the total amount one would have at the end of the annuity period if each payment (PMT) were invested at a given interest rate and held to the end of the annuity period. The equation is: Each payment of an annuity due is compounded for one…
How much can you live on each month with this retirement plan if you are retiring in 38 years? Monthly savings 731 Amount you have reaty today to invest 10,965 Pre - retirement interest rate you can earn 11% post - retirement interest rate yo can earn 6% When you retire, you'll spend 200,000 for a trip around the world You plan to live 30 years after retirement and leave 2 million$ to your children. Monthly living allowance:
Creating a retirement fund Personal Finance Problem To supplement your retirement, you estimate that you need to accumulate $220,000 exactly 45 years from today. You plan to make equal, end-of-year deposits into an account paying 8% annual interest. a. How large must the annual deposits be to create the $220,000 fund by the end of 45 years? b. If you can afford to deposit only $440 per year into the account, how much will you have accumulated in 45 years? (---) a. The annual deposits to create the $220,000 fund by the end of 45 years should be $. (Round to the nearest cent.)
You would like to save a million dollars by depositing $25,000 at the end of year into an account that pays 8% interest annually. How long will it take you to achieve your savings goal? Group of answer choices 18.65 years 12.35 years 20.0 years 40.00 years 37.04 years
ANSWER ASAP THE SUBQUESTIONS
How much money does Suzie need to have in her retirement savings account today if she wishes to withdraw $25,000 a year for 3 years? She expects to earn an average rate of return of 13 percent. A. $59,028.81 OB. $65,419.81 OC. $71,533.33 OD. $85,160.98 E. $87,391.34
You want to retire with $400 000 in the bank and you are able to earn 6% compounded quarterly for the next 25 years. How much money do you have to invest today in order to achieve your goal? Select one: a. $90 251.77 b. $90 201.77 c. $90 001.78 d. $90 251.78 e. $90 001.77
Suppose you plan to retire in 40 years. If you make annual contributions of $12,000 into your retirement account for the first 8 years, and no more contributions to the account for the remaining 32 years. If the retirement account earns a fixed 6% annual interest, how much will you have at your retirement? Question 10 options: $739,166 $766,466 $793,766 $811,766 $829,766 $851,966

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