You want to save $500,000 dollars for retirement in your 401K. Over the next 30 years, How much must you deposit weekly if the annuity is paying 8.35%? What will be your total payments into the annuity over the 30 year period? How much interest did you earn while building your annuity?

Q: Suppose you want to have $700,000 for retirement in 25 years. Your account earns 5% interest. How…

A: The retirement amount after 25 years (FV) is $700,000. The period is 25 years. The rate of interest…

Q: suppose you put $1500 into your IRA this year. You do not make any additional contributions to the…

A: given, pv = $1500 r=10.5% n = 42 years

Q: You wish to retire in 30 years, so you begin a 401K program that pays $100 into your account weekly…

A: Data given: N=30 years Weekly payment= $100 Interest rate= 6.35% (Compounded weekly)   Working…

Q: a) How much is in your account on retirement? b) Suppose you set up your account as a perpetuity on…

A: “Since you have posted a question with multiple subparts, we will solve the first three subparts for…

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 find the value of an annuity due, you will multiply the value of the ordinary annuity by…

A: Present value is the current worth of the future payments that are to be received. As per time value…

Q: To save for a down payment on a home, you invest in an annuity that pays 7.0% annual interest,…

A: The interest earned on the annuity can be calculated with the help of future value of annuity…

Q: You have just won the lottery and took a lump sum payout. After talking with a financial adviser you…

A: Present value of $16,000: Present value: $376,205.407024

Q: ou are saving for retirement in 30 years.  You contribute $5,500 a year to a pension plan for 20…

A: Annuity refers to series of equalized payments that are made either at start or end of specific…

Q: How much should you deposit at the end of each month into an investment account that pays 8.5%…

A: Retirement income is the money one receives after they stop working, either through savings,…

Q: You have decided you would like to deposit $5,000 into your account today and not touch it until you…

A: Future value of amount is the value of today money in future based on time and interest and is equal…

Q: You have decided to start a savings plan for your retirement. You plan to make an annual deposit of…

A: Given information: Annual deposit (PMT) = $90,000 Number of years in accumulation phase (n) = 8…

Q: 3. As part of your future retirement planning, you purchase an annuity that pays 3.5 % Search…

A: The retirement planning involves making regular payments or accumulation of funds that will be used…

Q: You will need to deposit $_______ each quarter.

A: Future Value of Annuity: It is computed by compounding the present stream of annuity cash flows…

Q: oday, you are retiring. You have a total of $411,016 in your retirement savings and have the funds…

A: Retirement savings refers to an amount that is kept aside by a person for the time of retirement and…

Q: A) How much should you deposit at the end of each month into an investment account that pays 8.5%…

A: Requirement is to save $1,000,000 in 35 years. Investor is going to deposit same amount at the end…

Q: To save for retirement, you decide to deposit $100 at the end of each month in an IRA that pays 5.5%…

A: Annuity refers to the periodic payments or receipts over a specified period of time.

Q: Suppose you want to have $400,000 for retirement in 30 years. Your account earns 5% interest. How…

A: Computation as follows: Hence, each month deposit will be $480.62.

Q: You currently have $2,320.00 in a retirement Savings account that earns an annual return of 7.59%.…

A: The objective of the question is to find out how much more money needs to be saved annually to reach…

Q: Let’s say that you are saving up for retirement and decide to deposit $3,000 each year for the next…

A: The objective of this question is to calculate the difference in the final amount of savings when…

Q: You have decided to start a savings plan for your retirement. You plan to make an annual deposit of…

A: The objective of the question is to calculate the future value of a series of annual deposits of…

Q: You know you will receive $1,450 each month in Social Security payments in retirement. Assuming you…

A: The Present Value of the investment is computed using an Excel formula.  Where, Monthly amount…

Q: Your pension plan is an annuity with a guaranteed return of 4% per year (compounded quarterly). You…

A: Formula for Calculating Future Value = PMT [(1+i)n - 1] / i Here, PMT = 1600              i    =…

Q: Your uncle is about to retire, and he wants to buy an annuity that will provide him with $6,800 of…

A: Payment = p = $6800Time = t = 14 yearsInterest rate = r = 5.25%

Q: Suppose that you'd like to retire in 40 years and you want to have a future value of $ 800000 in a…

A: Compound = monthly = 12 Time = t = 40 * 12 = 480 Future value = fv = $800,000

Effective Interest Rate

The term interest rate can be defined as the amount that is charged by the lender as a percentage on the principal amount. Interest rate which is charged annually is known as annual percentage rate.