You would like to start saving for retirement. Assuming you are now 25 years old and you want to retire at age 55, you have 30 years to watch your investment grow. You decide to invest in the stock market, which has earned about 9% per year over the past 80 years and is expected to continue at this rate. You decide to invest $1,000 at the end of each year for the next 30 years. Required: Calculate how much your accumulated investment is expected to be in 30 years. (FV of $1. PV of $1. EVA of $1. and PVA of $1) (Use tables, Excel, or a financial calculator. Round your answer to 2 decimal places.) Answer is complete but not entirely correct. Accumulated investment amount 100,834.00

You would like to start saving for retirement. Assuming you are now 25 years old and you want to retire at age 55, you have 30 years to watch your investment grow. You decide to invest in the stock market, which has earned about 9% per year over the past 80 years and is expected to continue at this rate. You decide to invest $1,000 at the end of each year for the next 30 years. Required: Calculate how much your accumulated investment is expected to be in 30 years. (FV of $1. PV of $1. EVA of $1. and PVA of $1) (Use tables, Excel, or a financial calculator. Round your answer to 2 decimal places.) Answer is complete but not entirely correct. Accumulated investment amount 100,834.00

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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Similar questions

You plan to retire in 20 years. You would like to maintain your current level of consumption which is $55,937 per year. You will need to have 38 years of consumption during your retirement. You can earn 5.52% per year (nominal terms) on your investments. In addition, you expect inflation to be 2.09% inflation per year, from now and through your retirement. How much do you have to invest each year, starting next year, for 13 years, in nominal terms to just cover your retirement needs?
And investor plans to invest $500 a year and expect to get a 10.5% return if the investor makes these contributions at the end of the next 20 years what is the present value of this investment today
You plan to retire in 20 years. Use present value tables to calculate whether it is better for you tosave $25,000 a year for the last 10 years before retirement or $15,000 for each of the 20 years.Assume you are able to earn 10 percent interest on your investments. Round to the nearest dollar.
Assume you can earn 9.4% per year on your investments. a. If you invest $170,000 for retirement at age 30, how much will you have 35 years later for retirement? b. If you wait until age 40 to invest the $170,000, how much will you have 25 years later for retirement? c. Why is the difference so large? a. If you invest $170,000 for retirement at age 30, how much will you have 35 years later for retirement? The future value is $ (Round to the nearest dollar)
You are going to retire in 40 years and currently have $100,000. What average annual return would you have to earn on your investment to have $1 million by the time you retire?
Based on the framework in the previous two problems, you have found that you need to have a total of $1,529,499 in savings at the time you retire, in 40 years. You currently only have $28,118 saved up in your retirement accounts. If you anticipate that your 80/20 investment portfolio will return an average of 8.31% per year, how much extra must you save every year to reach your goal? Assume that you'll be saving the extra amount by the end of each year.
You are planning to save enough to retire in 40 years. To do this, you will invest $1,000 at the end of each month in a stock account and $500 at the end of each month in a bond account. The stock account is expected to give 8% APR, compounded monthly. The bond account is expected to give 4% APR, also compounded monthly. When you retire, you will combine the two accounts and invest in an account that will earn 6% APR. How much will you withdraw from your post-retirement account every month if your withdrawal period is 25 years?
You are targeting a retirement portfolio value of $1,700,000 in 25 years. You plan to make annual payments at the end of each of those years. You expect your investments to earn an annual return of 7.50% per year. What should your annual payment be to achieve your retirement target? Group of answer choices $26,258.55 $35,011.40 $25,008.14 $23,263.39 $30,009.77
You are planning to save for retirement over the next 35 years. To do this, you will invest $619 per month in a stock account and $373 per month in a bond account. The return of the stock account is expected to be 7 percent, and the bond account will return 4 percent. When you retire, you will combine your money into an account with a return of 8 percent. How much can you withdraw each month from your account assuming a 30-year withdrawal period?
You are 19 years old today. You want to have $381,507.06 in an investment account when you are 60 years old. You will start with an initial deposit in one year from now and grow it by 3% per year for a total of 15 investments. How much is the amount of that initial deposit? Assume an interest rate (a.k.a. return on your investment of 6%. Use the $ sign and a comma and round to the nearest thousand...(e.g. $8,000 would be the form of a correct answer). Hint....the correct answer should be very close to a multiple of $1,000.
Help me please
You plan to invest $9.9 into an investment that you hope will earn a return of 12.01%. You will withdraw your money in 5 years. How much will you withdraw? Answer:

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