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You plan to retire in 45 years and would like to be able to spend $4,000 a month (at the end of every month) in retirement, and you estimate that you will live for 25 years in retirement. How much do you need to save per month (end of every month) between now and retirement to meet your goal? a. Assume interest rate= 5% i. $175.52 ii. $353.01 iii. $337.66 iv. $2,222.22 b. Assume interest rate= 10% i. $41.99 ii. $606.06 iii. $9,828.96 iv. $506.30

You plan to retire in 45 years and would like to be able to spend $4,000 a month (at the end of every month) in retirement, and you estimate that you will live for 25 years in retirement. How much do you need to save per month (end of every month) between now and retirement to meet your goal? a. Assume interest rate= 5% i. $175.52 ii. $353.01 iii. $337.66 iv. $2,222.22 b. Assume interest rate= 10% i. $41.99 ii. $606.06 iii. $9,828.96 iv. $506.30

Essentials Of Investments
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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Please answer question 9 and then 8. Thank you
Certainly! Below is the transcription of the text designed for an educational website context: --- ### Financial Planning Exercises #### 7. Saving for a Gaming PC You are able to save $30 every month (at the end of every month). How long will it take you to afford a $2,000 gaming PC if the interest rate is 3%, compounded monthly? a. **Assume you currently don’t have any savings** - i. 61.74 months - ii. 66.67 months - iii. 37.17 months - iv. 36.97 months b. **Assume you already have $1,000 in your savings account** - i. 17.72 months - ii. 33.33 months - iii. 29.68 months - iv. 38.17 months #### 8. Retirement Planning for Your Uncle Your uncle just retired. He has $800,000 in his savings account. He believes he will live another 25 years. How much can he live on monthly (assume that he withdraws his first month’s spending today, not at the end of the month)? a. **If the interest rate = 10%** - i. $7,209.53 - ii. $6,676.85 - iii. $597.96 - iv. $7,269.61 b. **If the interest rate = 4%** - i. $4,267.46 - ii. $4,222.69 - iii. $4,391.60 - iv. $4,208.67 c. He sadly passes away 5 years after his retirement. How much money does he have at the time of his passing (assume 4% interest rate)? - i. $546,638.32 - ii. $949,615.01 - iii. $696,836.93 - iv. $697,767.03 #### 9. Planning Your Own Retirement You plan to retire in 45 years and would like to be able to spend $4,000 a month (at the end of every month) in retirement, and you estimate that you will live for 25 years in retirement. How much do you need to
Transcribed Image Text:Certainly! Below is the transcription of the text designed for an educational website context: --- ### Financial Planning Exercises #### 7. Saving for a Gaming PC You are able to save $30 every month (at the end of every month). How long will it take you to afford a $2,000 gaming PC if the interest rate is 3%, compounded monthly? a. **Assume you currently don’t have any savings** - i. 61.74 months - ii. 66.67 months - iii. 37.17 months - iv. 36.97 months b. **Assume you already have $1,000 in your savings account** - i. 17.72 months - ii. 33.33 months - iii. 29.68 months - iv. 38.17 months #### 8. Retirement Planning for Your Uncle Your uncle just retired. He has $800,000 in his savings account. He believes he will live another 25 years. How much can he live on monthly (assume that he withdraws his first month’s spending today, not at the end of the month)? a. **If the interest rate = 10%** - i. $7,209.53 - ii. $6,676.85 - iii. $597.96 - iv. $7,269.61 b. **If the interest rate = 4%** - i. $4,267.46 - ii. $4,222.69 - iii. $4,391.60 - iv. $4,208.67 c. He sadly passes away 5 years after his retirement. How much money does he have at the time of his passing (assume 4% interest rate)? - i. $546,638.32 - ii. $949,615.01 - iii. $696,836.93 - iv. $697,767.03 #### 9. Planning Your Own Retirement You plan to retire in 45 years and would like to be able to spend $4,000 a month (at the end of every month) in retirement, and you estimate that you will live for 25 years in retirement. How much do you need to
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