You plan on retiring in exactly 6 years and you would like to have a retirement fund balance of exactly $2,000,000 at that time. You are convinced that you can earn an APR (based on monthly compounding) of 5.1%. If you are making beginning-of-the-month payments into the account, how much does each one of the payments need to be in order to reach your target? To nearest $0.01

You plan on retiring in exactly 6 years and you would like to have a retirement fund balance of exactly $2,000,000 at that time. You are convinced that you can earn an APR (based on monthly compounding) of 5.1%. If you are making beginning-of-the-month payments into the account, how much does each one of the payments need to be in order to reach your target? To nearest $0.01

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

See similar textbooks

Similar questions

You want to retire in 30 years with $2,500,000 in your retirement account, how much do you need to invest each year, starting one year from today, if you expect to earn 8% annually on your money?
Suppose you want to have $500,000.00 for retirement in 35 years. You plan to make regular monthly deposits into an account earning 7% interest compounded monthly. How much would you need to deposit in the account each month? How much money will you have put into the account? Hint How much interest will you have earned? Hint
You decide to make monthly payments into a retirement fund earning 4.75% compounded monthly. Note: Payments are made at the end of each period. Use this information for the questions below. Use the Saving for Retirement information above to answer this question. If your monthly payments are $147, how much will you have in your retirement fund after 40 years? $_________. Round to the nearest dollar.
You plan to start saving now for a downpayment for a house in your RRSP. You deposit $750 every month. starting next month, for 7 years at an average interest rate of 6%/a compounded monthly. How much money will you have in your RRSP for your down payment in 7 years? Your Answer:
Suppose you want to have $800,000 for retirement in 30 years. Your account earns 6% interest. How much would you need to deposit in the account each month?
You have $58,138.29 in a brokerage account, and you plan to deposit an additional $4,000 at the end of every future year until your account totals $240,000. You expect to earn 10% annually on the account. How many years will it take to reach your goal? Round your answer to the nearest whole number.
You plan to place $1,200 per year into a Roth IRA. You expect to earn 6% APR and you will place this amount into the account for 35 years. How much will you have in the account in 35 years? Round to the nearest $1,000.
In planning for your retirement, you would like to withdraw $50, 000 per year for 19 years. The first withdrawal will occur 20 years from today. What amount must you invest today if your return is 15% per year?
Suppose you want to save $220,000 for retirement. You will do so by putting monthly deposits into an account that gets 5% interest compounded monthly for 30 years. What should your monthly deposits be? Round your answer to the nearest cent and include units. Make sure you show the formula you used and the values you filled in.
You have estimated your future retirement income needs and, after taking Social Security into account, you have determined that you will have an pretax income shortfall of $100,000 in your first year of retirement at age 65. How much will you need to have saved by then, assuming you want to have your retirement income increase with inflation, but are willing to spend down your principal over time? Assume that you will live for 40 years in retirement, inflation will average 3% and you can earn 7% on your investments. (Hint: Use the inflation - adjusted annuity equation). You have estimated your future retirement income needs and, after taking Social Security into account, you have determined that you will have an pretax income shortfall of $100,000 in your first year of retirement at age 65. How much will you need to have saved by then, assuming you want to have your retirement income increase with inflation, but are willing to spend down your principal over time? Assume that you will…
Suppose you want to have $600,000 for retirement in 25 years. Your account earns 10% interest. How much would you need to deposit in the account each month?
You believe you will spend $47,000 a year for 13 years once you retire in 26 years. If the interest rate is 7% per year, how much must you save each year until retirement to meet your retirement goal? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Annual savings

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS