Your client has been given a trust fund valued at $1.19 million. He cannot access the money until he turns 65 years old, which is in 30 years. At that time, he can withdraw $20,500 per month. If the trust fund is invested at a 4.0 percent rate, how many months will it last your client once he starts to withdraw the money? Note: Assume annual compounding. Do not round Intermediate calculations and round your final answer to 2 decimal places. Number of months

Your client has been given a trust fund valued at $1.19 million. He cannot access the money until he turns 65 years old, which is in 30 years. At that time, he can withdraw $20,500 per month. If the trust fund is invested at a 4.0 percent rate, how many months will it last your client once he starts to withdraw the money? Note: Assume annual compounding. Do not round Intermediate calculations and round your final answer to 2 decimal places. Number of months

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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An engineer will deposit 15% of her salary each year into a retirement fund. If her current annual salary is $80000 and she expects that it will increase by 5% (g) each year, what will be the present worth of the fund after 35 years if it earns 5% interest? (Answer: $400,000) Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
At the time of her grandson's birth, a grandmother deposits $4000 in an account that pays 4% compounded monthly. What will be the value of the account at the child's twenty-first birthday, assuming that no other deposits or withdrawals are made during this period? Click the icon to view some finance formulas. The value of the account will be $ (Round to the nearest dollar as needed.) Formulas In the provided formulas, A is the balance in the account after t years, P is the principal investment, r is the annual interest rate in decimal form, n is the number of compounding periods per year, and Y is the investment's effective annual yield in decimal form. nt A=P(1+1) " P= A (₁.3⁰² Print A=Pet Y Done -1
Boretti has $400,000 in a stock fund. The fund pays a 10% return, compounded annually. If he does not make another deposit into the account, how long will it take for the account to increase to $2 million? (Do not round intermediate calculations. Round the final answer to two decimal places.)
You are planning to save for retirement over the next 25 years. To do this, you will invest $1,200 a month in a stock account and $900 a month in a bond account. The return of the stock account is expected to be 7 percent, and the bond account will pay 4 percent. When you retire, you will combine your money into an account with a return of 5 percent. How much can you withdraw each month from your account assuming a 20-year withdrawal period? Multiple Choice $621,766.96 $9,279.68 $9.469.06 $9,658.44 $113,628.75
Jennifer Davis is saving to buy a house in five years. She plans to put 20 percent down at that time, and she believes that she will need $28,000 for the down payment. If Jennifer can invest in a fund that pays 7.0 percent annual interest, compounded quarterly, how much will she have to invest today to have enough money for the down payment? (Round intermediate calculations to 6 decimal places, e.g. 2.512512 and final answer to 2 decimal places, e.g. 2,515.25.) Excel Template (Note: This template includes the problem statement as it appears in your textbook. The problem assigned to you here may have different values. When using this template, copy the problem statement from this screen for easy reference to the values you've been given here, and be sure to update any values that may have been pre-entered in the template based on the textbook version of the problem.) Amount to be invested today
Your parents will retire in 17 years. They currently have $310,000 saved, and they think they will need $2,200,000 at retirement. What annual interest rate must they earn to reach their goal, assuming they don't save any additional funds? Round your answer to two decimal places. %
3. Your parents will retire in 27 years. They currently have $400,000 saved, and they think they will need $1,850,000 at retirement. What annual interest rate must they earn to reach their goal, assuming they don't save any additional funds? Round your answer to two decimal places. 4. If you deposit money today in an account that pays 12.5% annual interest, how long will it take to double your money? Round your answer to two decimal places.= years 5. You have $10,043.17 in a brokerage account, and you plan to deposit an additional $5,000 at the end of every future year until your account totals $230,000. You expect to earn 13% annually on the account. How many years will it take to reach your goal? Round your answer to the nearest whole number.= years 6. What's the future value of a 9%, 5-year ordinary annuity that pays $700 each year? If this was an annuity due, what would its future value be? Do not round intermediate calculations. Round your answers to the…
Your Aunt Ruth has $610,000 invested at 6.5%, and she plans to retire. She wants to withdraw $40,000 at the beginning of each year, starting immediately. How many years will it take to exhaust her funds, i.e., run the account down to zero?
You want to have $60,000 in your savings account 12 years from now, and you're prepared to make equal annual deposits into the account at the end of each year. If the account pays 6.4 percent interest, what amount must you deposit each year? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Deposit amount
You expect to receive $29,000 at graduation in two years. You plan on investing it at 10 percent until you have $164,000. How long will you wait from now? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
You are planning to make monthly deposits of $340 into a retirement account that pays 9 percent annual interest compounded monthly. If your first deposit will be made one month from now, how large will your retirement account be in 35 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Future value
If you invest $10,000 per period for the following number of periods, how much would you have in each of the following instances? Use Appendix C for an approximate answer, but calculate your final answer using the formula and financial calculator methods. In 50 years at 8 percent? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

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