You have just turned 23 years of age and accepted your first job. However, you would like to retire at 58 years of age. Having paid attention in your business courses, you have calculated that you will need to save $2 million dollars by age 58 to retire comfortably. How much must you put into your retirement savings account each year (at the end of the year) between now and age 58 (assume an interest rate of 5% annually)? You must put $ into your retirement savings account each year. (Round the final answer to cent as needed. Keep all decimal places as you work through the problem.)

You have just turned 23 years of age and accepted your first job. However, you would like to retire at 58 years of age. Having paid attention in your business courses, you have calculated that you will need to save $2 million dollars by age 58 to retire comfortably. How much must you put into your retirement savings account each year (at the end of the year) between now and age 58 (assume an interest rate of 5% annually)? You must put $ into your retirement savings account each year. (Round the final answer to cent as needed. Keep all decimal places as you work through the problem.)

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 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?
a. Suppose that between the ages of 22 and 36, you contribute $9000 per year to a 401(k) and your employer contributes $4500 per year on your behalf. The interest rate is 8.5% compounded annually. What is the value of the 401(k) after 14 years? b. Suppose that after 14 years of working for this firm, you move on to a new job. However, you keep your accumulated retirement funds in the 401(k). How much money will you have in the plan when you reach age 65? c. What is the difference between the amount of money you will have accumulated in the 401(k) and the amount you contributed to the plan? Click the icon to view some finance formulas. a. The value of the 401(k) after 14 years is $ (Do not round until the final answer. Then round to the nearest dollar as needed.)
Why are common sized financial statements useful? How do they differ from traditional financial statements in the way that they are calculated?
You just retired to find your retirement savings account has reached $1,000,000. The savings account has a rate of 3.1 % compounded continuously. Your lifestyle requires you to live off $50,000 each year to be comfortable. If at retirement age you are 65 years old, how old will you be when the money runs out?
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You have just retired with savings of $4 million. If you expect to live for 57 years and to earn 13% a year on your savings, how much can you afford to spend each year (in $ dollars)? $_______. (Assume that you spend the money at the start of each year.)
You are preparing for your retirement and have decided to begin saving early. Based on your research, you've determined that you will require $3,000 per month to cover your living expenses during retirement. a. How much money do you need when you retire if you place all of it in a compound interest account that earns 7% compounded monthly, and is living off the interest only? (What is the required retirement savings amount that can generate your monthly living expenses as interest income?)
You are considering a retirement savings. For this you will need to determine following information. Average starting salary of you major. $73,000 Your annual retirement savings amount. 8% of annual income Your age when you start working. 23 years old Your age when you plan to retire. 58 Retirement account investment vehicle. This will determine the growth rate. ? idk what this is... When I retire I want to open a ice cream shop (this might help answer the question) Create an excel table with your age column, annual contribution, annual account balance. Re-do the calculation with monthly contribution and find your account balance at your retirement. Submit excel table with all your information.
You save $400 a year into a 401(k) account that you invest in a mutual fund earning 10% per year. You plan to retire in 30 years. How much money will you have in your account at retirement? Your Answer:
Please show proper steps thanks
You want to retire with at least $1,500,000 in the bank and figure you will continue working for another 40 years. After all of your expenses you can only afford to save $250 a month. What is the lowest interest rate you will need to earn to ensure you meet your retirement goal?
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.

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