You want to be able to withdraw $1, 500 from your account each month for 20 years after you retire from an account earning 2.25 % interest compounded monthly. How much will need in your retirement account at the beginning of your retirement? In order to achieve this goal, you will make monthly payments and earn 6.75 % interest compounded monthly. If you expect to retire in 15 years, how much should your monthly payments be to reach this goal?
Q: You want to be able to withdraw $40,000 from your account each year for 15 years after you retire.…
A: The Present Value of this withdrawal is computed as follows: Withdrawal = $40,000 Time period = 15…
Q: If you deposit $250 each month into an individual retirment account that earns 4.8% interest…
A:
Q: suppose that you would like to save $20,000 over 5 years to use as a down payment for a house by…
A: Computation of monthly deposit:Hence, the monthly deposit into the account is $301.66 per month.
Q: When you retire, you plan to draw $50,000 per year from your retirement accounts, which will be…
A: Here, Annual payment = $50,000 Interest rate = 6% Number of periods = 10 years To Find: PV of…
Q: To supplement your planned retirement, you estimate that you need to accumulate R 220, 000 in 42…
A: Formulas: Future value = Annual payment *((1+rate)^years-1)/Rate
Q: You decide to make annual deposits of $300.00 for 12 years into an account which pays 5% compounded…
A: Annual deposits = $300 Time duration = 12 years Interest Rate = 5% The future value of the annuity…
Q: suppose you want to be able to withdraw $4,800 at the end of each month for the next 20 years. How…
A: The present value of the annuity factor is used when there is an equal series of cash flows and the…
Q: You would like to save $250,000for retirement. If you are planning to retire 30 years from now, how…
A: The monthly deposit is the amount that is paid every month until the maturity of the period.
Q: To supplement your planned retirement in exactly 42 years, you estimate that you need to accumulate…
A: The future value of an annuity is the worth of a series of recurrent payments at a future date,…
Q: You deposit $400 each month into an account earning 6% interest compounded monthly. How much will…
A: FV of annuity=P1+rn-1rwhere,P=Periodic paymentr=rate per periodn=number of periods
Q: You currently have $250,000 in your retirement account. What equal annual amount must you deposit…
A: Equal annual deposits into an account for a fixed number of times is called annuity. The future…
Q: If you save 400 per month for retirement in an account that earns 8% interest per year, compounded…
A: Given information: Monthly saving $400 Interest rate 8% Number of years is 36
Q: how much money will be in the account? How much of it is interest?
A: Annuity payments are the fixed periodic payments that an investor or depositor makes into an…
Q: After retirement, you expect to live for 25 years. You would like to have a $95,000 income each…
A: Here,
Q: How much should Ryan have in a savings account that is earning 2.50% compounded monthly, if he plans…
A: Present Value of Annuity: It represents the present worth of the future cash flows stream and is…
Q: You are planning to make monthly deposits of $450 into a retirement account that pays 10 percent…
A: The term "annuity" represents a series of equivalent periodic cash flows occurring at equal time…
Q: Suppose that Jacob would like to invest at the end of each month for the next 15 years into an…
A: Ordinary Annuity refers to series of equalized payments that are made at end of period for certain…
Q: Suppose you want to have $800,000 for retirement in 30 years. Your account earns 9% interest…
A: The amount that need to be deposited can be calculated using the formula of future value of annuity.…
Q: You plan to deposit $200 at the end of every six months for 8 years starting at the end of month 6.…
A: Answer: Calculation of the amount that will be available to withdraw at the end of year 15: The…
Q: You have just deposited $9,500 into an account that promises to pay you an annual interest rate of…
A: GOAL (FV) 27940 INTEREST RATE 6.20% YEARS 8+12=20 PMT 0 PV 9500
Q: Suppose you want to have $700,000 for retirement in 25years. Your account earns 9% interest. a) How…
A: In this we need to calculate the future value factor monthly and than calculate the monthly payment…
Q: How much should you deposit at the end of each month into an investment account that pays 9%…
A: The future value of an annuity is the future worth of a series of investments at a certain rate and…
Q: You deposit $500 each month into an account earning 5% interest compounded monthly. a) How much…
A: The future value is the value of amount in future that has to paid or received at current or in…
Q: You currently have $250,000 in your retirement account. What equal annual amount can you withe each…
A: We will have to use the concept of time value of money to solve this.
Q: You are to make monthly deposits of $500 into a retirement account that pays 10.3 percent interest…
A: A monthly deposit (P) of $500 is made for a period (n) of 420 (35*12=420) at an interest rate ( r )…
Q: Andrew would like a retirement income of $3,000 per month (beginning of month payments) for 19 years…
A: Retirement income is $3000 per month Time period is 19 Years Interest rate is 3.6%
Q: You want to be able to withdraw $35,000 from your account each year for 15 years after you retire.…
A: Given, Amount required each year after requirement us $35000. term of payment is 15 years Rate of…
Q: You want to be able to withdraw $45,000 from your account each year for 20 years after you retire.…
A: After retirement: payment amount = $45000 number of year = 20 rate of interest = 7% Before…
Q: You would like to save $250,000 for retirement. If you are planning to retire 30 years from now, how…
A: Dear student we need to use excel for calculation of monthly deposit(PMT) by using PMT functions.
Q: You plan to deposit $100 at the end of every quarter (3 months) for 8 years starting at the end of…
A: Quarterly deposit (Q) = $100 Number of deposits (n) = 8 years = 32 quarters r = 8% per annum = 2%…
Q: You want to be able to withdraw $35,000 from your account each year for 20 years after you retire.…
A: ACCORDING TO THE RULE, WE WILL ANSWER THE FIRST THREE SUBPARTSQUESTION ONLY, FOR THE REMAINING…
Q: You deposit $100 each month into an account earning 8% interest compounded monthly. a) How much will…
A: Monthly deposit (P) = $ 100 Interest rate = 8% Monthly interest rate (r) = 8%/12 =…
Q: Suppose you want to have $600,000 for retirement in 25 years. Your account earns 10% interest. How…
A: Future Value $ 6,00,000.00 Time Period 25 Interest Rate 10%
Q: If you save $500 per quarter for retirement in an account that earns 8% interest per year,…
A: Retirement planning wherein a fixed amount is saved for a definite period to reap the benefits of…
Q: Suppose you want to have $800,000 for retirement in 20 years. Your account earns 8% interest. a) How…
A: The amount to be invested each month will be compounded and will form a corpus und at the end of the…
Q: Every year, you receive your entire annual salary at the end of the year. This year, your…
A: Inflation rate With nominal rate and real rate, the inflation rate is calculated as show below.…
Q: When you retire at 65, you wish to be able to have $3,000 each month for 25 years. How much would…
A: Firstly calculate the present value of annuity with $3000 as PMT and 25 years, use this present…
Q: If you have $125,000 saved for retirement, how many months will it last if you earn an annual…
A: GIVEN, PV = $125000 R=5.5% M=12 A= $1400 Beginning of month withdrawals
Q: An engineer who is planning his retirement has decided that he will have to withdraw ₱10 000 from…
A: Retirement funds are the funds that are accumulated by an individual in his/her pre-retirement life…
Q: Suppose you want to have $800,000.00 for retirement in 30 years. You plan to make regular monthly…
A: Monthly deposit It is the minimum value a person will deposit in an account every month. It is the…
Q: Suppose you want to have $800,000 for retirement in 20 years. Your account earns 6% interest. How…
A: Solution:- When an equal amount is deposited each period, it is called annuity. Future value of…
Q: You want to have 75000 in your savings account 12 years from now, and you’re prepared to make equal…
A: Given information: Amount at the end (Future value) 75000 Time Period (in years) 12 Interest…
Q: You are planning to make monthly deposits of $460 into a retirement account that pays 10 percent…
A: Given information: Monthly deposit amount is $460 Number of years is 30, Interest rate is 10%
Q: You deposit $200 each month into an account earning 5% interest compounded monthly. How much will…
A: Future worth of the amount is referred as the worth of the currently deposited amount at some future…
Q: At the moment you don't have any money saved for retirement, but have resolved to start making $425…
A: Given: Monthly payments "PMT" = $425 Effective annual rate = 9.9% Future value "FV" = $2400000
Q: You want to supplement your retirement income through a retirement account. You have 15 years left…
A: First withdrawl amount is $15,000 Growth rate is 5% Starting year of Withdrawal is 16th Ending Year…
Q: Suppose you want to have $600,000 for retirement in 20 years. Your account earns 5% interest.a) How…
A: The question given is related to the annuity payouts, which refers to a series of payments paid over…
Q: You want to be able to withdraw $35,000 from your account each year for 20 years after you retire.…
A: The concept of the time value of money states that the current worth of money is more than its value…
Step by step
Solved in 2 steps with 1 images
- Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $4,200 over the next 6 years when the interest rate is 8%, how much do you need to deposit in the account? B. If you place $8,700 in a savings account, how much will you have at the end of 12 years with an interest rate of 8%? C. You invest $2,000 per year, at the end of the year, for 20 years at 10% interest. How much will you have at the end of 20 years? D. You win the lottery and can either receive $500,000 as a lump sum or $60,000 per year for 20 years. Assuming you can earn 3% interest, which do you recommend and why?You want to be able to withdraw $40,000 from your account each year for 25 years after you retire. If you expect to retire in 15 years and your account earns 6.6% interest while saving for retirement and 6.2% interest while retired:Round your answers to the nearest cent as needed.a) How much will you need to have when you retire?$b) How much will you need to deposit each month until retirement to achieve your retirement goals?$c) How much did you deposit into you retirement account?$d) How much did you receive in payments during retirement?$e) How much of the money you received was interest?$Suppose you have estimated that you will need $2,500 per month in your retirement to meet your expenses and live comfortably, and that you have found or chosen a fund (account) which pays monthly interest 4% APR . What principal, or balance, will your account need to maintain in order to be able to pay you this amount each month? Round/take your answer to the nearest cent.
- using excel: How much money must you invest today in order to withdraw the following monthly payments in retirement, $1,000 per month from Year 1 through Year 5, $750 per month from Year 6 through 10? Assume you can earn a rate of return of 8.60%.Choose the appropriate formula type for answering the following question: Suppose you want to have $410,500 for retirement in 15 years. Your account earns 6.5% interest. How much would you need to deposit in the account each month? Annuity Compound Interest Loan/Payout Annuity(Use Calulator or Formula Approach) You want to receive $5,000 per month in retirement. If you can earn 0.75% per month and you expect to need the income for 25 years, how much do you need to have in your account at retirement?
- An insurance agent has been attempting to convince you to purchase an savings plan towards your retirement but you are not convinced of its value. After all, you are young, and have many years to prepare for this. He proposes that you save $325 at the beginning of every month for 30 years, in an account that pays 12% annual interest, compounded monthly. Required: b) Compute the Effective Annual Return (EAR) on this account. Please answer this question showing all working.Solve the following problems. Round your results to the nearest cent as needed. You need a loan to purchase a car. After the down payment, you need to borrow $24, 200. If a bank offers you a loan at 6.9% for 6 years, how much will your monthly payment be? How much will you pay in interest? Your monthly payment will be $ dollars You will pay a total of $ dollars TVM Calculator in interestSuppose you are 30 years old and would like to retire at age 60. Furthermore, you would like to have a retirement fund which you can draw an income of $1250,00 per year- forever! How much would you need to deposit each month to do this? Assume a constant APR of 6% and that compounding and payment periods are the same. To draw $125000 per year there must be $____ in your saving account when you retire.
- We are considering the effects of starting early or late to save for retirement. Assume that each account considered has an APR of 6% compounded monthly. Following expert advice, you begin your retirement program as soon as you graduate from college at age 32. You plan to retire at the age of 65. What monthly contributions do you need to make to have a retirement account worth $1,000,000? (Round your answer to the nearest cent.) $ What will your total personal contribution be by the time you retire if you start saving after graduation? $ Against expert advice, you begin your retirement program at age 49. You plan to retire at the age of 65. What monthly contributions do you need to make to have a retirement account worth $1,000,000? (Round your answer to the nearest cent.) $ What will your total personal contribution be by the time you retire if you start saving at age 49? $ How much more will you personally contribute by the time you retire if you start saving at age 49…Suppose you want to have $400,000 for retirement in 25 years. Your account earns 5% interest. Feel free to use the Online Basic Financial Calculator a) How much would you need to deposit in the account each month? es b) How much interest will you earn? $suppose that you would like your retirement account, which has a 5% APR compounded monthly, to pay you $2500/month over the course of 25 years. To the nearest cent, what to the nearest cent, what nest egg is required?