Your employer offers a 401(k) plan with a 23% match, and you set a goal of retiring in 28 years with an amount of money which has the same buying power that 1.7 million dollars has today. If the account earns an annual interest rate of 5.4% and the expected annual rate of inflation is 1.2%, how much should you contribute each month? Round your answer to the nearest dollar.
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- You put $250 in the bank for S years at 12%. A. If interest is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the fifth year. B. Use the future value of $1 table in Appendix B and verity that your answer is correct.You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years. Which table will help you determine the value of your account at the end of 12 years? A. future value of one dollar ($1) B. present value of one dollar ($1) C. future value of an ordinary annuity D. present value of an ordinary annuityYour employer offers a 401(k) plan with a 22% match, and you set a goal of retiring in 27 years with an amount of money which has the same buying power that 1.6 million dollars has today. If the account earns an annual interest rate of 4.5% and the expected annual rate of inflation is 1.6%, how much should you contribute each month?
- You want to be able to withdraw $35,000 from your account each year for 20 years after you retire. If you expect to retire in 30 years and your account earns 7.9% interest while saving for retirement and 7.7% interest while retired:Round your answers to the nearest cent as needed.a) How much will you need to have when you retire?$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?Your employer offers a401(k)plan with a45%match, and you set a goal of retiring in 27 years with an amount of money which has the same buying power that1.4million dollars has today. If the account earns an annual interest rate of1.5%and the expected annual rate of inflation is1.6%, how much should YOU contribute each month to the401(k)? Round your answer to the nearest dollar.Suppose you are paid $2400 per month and your employer's 401(k) matches your contributions by 50% up to a maximum of 10% of your pay. Assuming you max-out your retirement savings and you work for 30 years, how much will the 401(k) be worth when you retire (if you can get an APR of 8% during your work years)?
- Suppose that an insurance agent offers you a policy that will provide you with a yearly income of $60,000 in 30 years. What is the comparable salary today, assuming an inflation rate of 5% compounded annually? (Round your answer to the nearest cent.)$Suppose you are 30 years old and would like to retire at age 60. Furthermore, you would like to have a retirement fund from which you can draw an income of $50,000 per year–forever! How much would you need to deposit each month to dothis? Assume a constant APR of 8% and that the compounding and payment periods are the same.For 40 years, you invest $200 per month at an APR of 4.8% compounded monthly, then you retire and plan to live on your retirement nest egg. a) How much is in your account on retirement? b) Suppose you set up your account as a perpetuity on retirement. What will your monthly income be? (Assume that the APR remains at 4.8% compounded monthly.) c) Suppose now you use the balance in your account for a life annuity instead of a perpetuity. If your life expectancy is 21 years, what will your monthly income be? (Again, assume that the APR remains at 4.8% compounded monthly.) d) Compare the total amount you invested with your total return from part c. Assume that you live 21 years after retirement.
- Suppose that you'd like to retire in 40 years and you want to have a future value of $ 800000 in a savings account. Also suppose that your employer makes regular monthly payments into your retirement account. If you can expect an APR of 7.5% for your account, how much do you need your employer to deposit each month? Employer Contribution = The formulas we have been using assume that the interest rate is constant over the period in question. Over a period of 40 years, though, interest rates can vary widely. To see what difference the interest rate can make, let's assume a constant APR of 4% for your retirement account. How much do you need your employer to deposit each month under this assumption? Employer Contribution =Suppose that you'd like to retire in 40 years and you want to have a future value of $ 500000 in a savings account. Also suppose that your employer makes regular monthly payments into your retirement account. If you can expect an APR of 7.5% for your account, how much do you need your employer to deposit each month? Employer Contribution = The formulas we have been using assume that the interest rate is constant over the period in question. Over a period of 40 years, though, interest rates can vary widely. To see what difference the interest rate can make, let's assume a constant APR of 4% for your retirement account. How much do you need your employer to deposit each month under this assumption? Employer Contribution = rate dic restSuppose 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.