You have 35 years left until retirement and want to retire with $4.5 million. Your salary ispaid annually, and you will receive $63,000 at the end of the current year. Your salarywill increase at 3.3 percent per year, and you can earn an annual return of 9.3 percent onthe money you invest. If you save a constant percentage of your salary, what percentageof your salary must you save each year? (Do not round intermediate calculations andenter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)Percentage of salary to save%

Salary received at the end of the current year$63,000Salary increment percentage3.3%Annual…

You have 35 years left until retirement and want to retire with $4.5 million. Your salary is paid annually, and you will receive $63,000 at the end of the current year. Your salary will increase at 3.3 percent per year, and you can earn an annual return of 9.3 percent or the money you invest. If you save a constant percentage of your salary, what percentage of your salary must you save each year? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Percentage of salary to save %

You have 35 years left until retirement and want to retire with $4.5 million. Your salary is paid annually, and you will receive $63,000 at the end of the current year. Your salary will increase at 3.3 percent per year, and you can earn an annual return of 9.3 percent or the money you invest. If you save a constant percentage of your salary, what percentage of your salary must you save each year? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Percentage of salary to save %

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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Similar questions

You will retire in 26 years and can afford to put away 11 % of your salary each year. You make payments at the end of each year, including year 26 30. If your salary over the coming year is $118,930 but you expect it to grow at 4 % per year, and you assume a 7% return (annually) on your 401K, how big will your "nest egg" be at retirement? (Round your answer to three decimal places. For example 1.23450 or 1.23463 will be rounded to 1.235 while 1.23448 will be rounded to 1.234. Please DO NOT do any intermediate rounding and only round the final answer
You are leaving today on an 3-year trip during which time you will incur expenses of $40,000 at the end of each year. How much must you invest today to have enough to meet your expenses? The annual percentage rate is 12%.
Your parents will retire in 22 years. They currently have $220,000 saved, and they think they will need $2,300,000 at retirement. What annual interest rate must they earn to reach their goal, assuming they don't save any additional funds? Round your answer to two decimal places.
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?
Your parents will retire in 20 years. They currently have $350,000 saved, and they think they will need $1,850,000 at retirement. What annual interest rate must they earn to reach their goal, assuming they don't save any additional funds? Round your answer to two decimal places. %
Your parents will retire in 17 years. They currently have $290,000 saved, and they think they will need $2,000,000 at retirement. What annual interest rate must they earn to reach their goal, assuming they don't save any additional funds? Round your answer to two decimal places.
You have 30 years left until retirement and want to retire with $2.6 million. Your salary is paid annually, and you will receive $76,000 at the end of the current year. Your salary will increase at 3 percent per year, and you can earn a return of 9 percent on the money you invest. If you save a constant percentage of your salary, what percentage of your salary must you save each year? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Perentage of Salary:______________
Your parents will retire in 27 years. They currently have $370,000 saved, and they think they will need $1,100,000 at retirement. What annual interest rate must they earn to reach their goal, assuming they don't save any additional funds? Round your answer to two decimal places. %
You believe you will need to have saved $593,000 by the time you retire in 30 years in order to live comfortably. You also believe that you will inherit $113,000 in 5 years. 1) If the interest rate is 7% per year, what is the future value of your inheritance at retirement? 2) How much additional money must you save to meet your retirement goal, assuming you save your entire inheritance?
Carlo Aldric wants to have P40,000 per year for 15 years during his retirement. What amount would you need to have invested at retirement to reach this goal if you could invest your money and receive a 5 percent return?
I want a monthly income of $6,500 during my retirement. I will retire at 67 and "plan" to live until 97 (30 years after retirement). I am 42 right now. If I have $170,000 in retirement account right now, how much should I save each quarter until retirement to meet my income requirement during retirement. Assume: 6% annual rate of return until retirement, compounded quarterly. Assume: 0.25% monthly rate of return compounded monthly, after retirement. This problem has multiple steps.
You are scheduled to receive $5,000 in two years. When you receive it, you will invest it at 6.5 percent per year. How much will your investment be worth eight years from now? Can the excel and calculator solutions be provided?

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