Your job pays you only once a year for all the work you did over the previous 12 months. Today, December 31, you just received your salary of $60,000 and you plan to spend all of it. However, you want to start saving for retirement beginning next year. You have decided that one year from today you will begin depositing 8 percent of your annual salary in an account that will earn 10 percent per year. Your salary will increase at 3 percent per year throughout your career. How much money will you have on the date of your retirement 40 years from today? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) Future value

Your job pays you only once a year for all the work you did over the previous 12 months. Today, December 31, you just received your salary of $60,000 and you plan to spend all of it. However, you want to start saving for retirement beginning next year. You have decided that one year from today you will begin depositing 8 percent of your annual salary in an account that will earn 10 percent per year. Your salary will increase at 3 percent per year throughout your career. How much money will you have on the date of your retirement 40 years from today? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) Future value

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 save money for a down payment of $39,000 to purchase an apartment. You can only afford to save $6,000 at the end of every 6 months into an account that earns interest at 5.75% compounded monthly. How long will it take you to save the planned amount? years months Express the answers in years and months, rounded to the next payment period
Five years after you graduate from MSU, you receive a promotion that increases your salary to $120,000 per year. You have decided to buy a house, so you go to a bank that gives you the following offer on a loan: 9% annual interest, no down payment required, closing costs of 5% of the amount borrowed, 30 year loan with monthly payments, and the amount of the monthly payment cannot exceed 25% of your monthly pre-tax pay. In addition to that maximim amount you can borrow from the bank, you have saved $50,000 that you will put toward the purchase of the house. What is the maximum price that you can afford to pay for the house (hint: you will borrow the maximum amount the bank will allow you to borrow, and add the money you have saved onto that, and you must also pay the closing costs)? Multiple Choice $76,899.93 $310.704.66 10 $345,169.43 $360,704.66 $373739.90
In an effort to save money for early retirement, an environmental engineer plans to deposit $1200 per month starting one month from now, into a selfdirected investment account that pays 8% per year compounded semiannually. How much will be in the account at the end of 25 years?
You have just entered a two-year part-time Executive MBA. The tuition fee is $15,000 per year payable at the beginning of each year. Before the program you eamed $40, 000 per year. Your expected salary after graduation. is $55, 000 per year. You can invest your money at 8%. Assume that you will work for 30 years after graduation. The salary differential of $15,000 will continue through this period. How much is your EMBA worth?
Your job pays you only once a year for all the work you did over the previous 12 months. Today, December 31, you received your salary of $54,000 and you plan to spend all of it. However, you want to start saving for retirement beginning next year. You have decided that one year from today you will begin depositing 10 percent of your annual salary in an account that will earn 9.4 percent per year. Your salary will increase at 4 percent per year throughout your career. How much money will you have on the date of your retirement 45 years from today?
Your beginning salary is $70,000. You deposit 12% at the end of each year in a savings account that earns 3% interest. Your salary increases by 2% per year. What value does your savings book show after 40 years?
You are graduating from college at the end of this semester and after reading the The Business of Life box in this chapter, you have decided to invest $4300 at the end of each year into a Roth IRA for the next 41 years. If you earn 8 percent compounded annually on your investment, how much will you have when you retire in 41 years? How much will you have if you wait 10 years before beginning to save and only make payments into your retirement account?
Suppose a recent college graduate's first job allows her to deposit $250 at the end of each month in a savings plan that earns 9%, compounded monthly. This savings plan continues for 11 years before new obligations make it impossible to continue. If the accrued amount remains in the plan for the next 15 years without deposits or withdrawals, how much money will be in the account 26 years after the plan began? (Round your answer to the nearest cent.) $
You have finished your time at Kelley and need to start thinking about retirement. You plan on working for 30 moreyears and then retire. Upon your retirement 30 years from today, you plan to have enough money to withdraw $75,000every 6 months, with the first payment coming exactly six months after your retirement day. You expect yourretirement account to earn a return of 8% APR (stated rate), compounded quarterly, on all funds in the retirementaccount. Assume you want to draw on the retirement fund for 20 years after your retirement (40 semiannualwithdrawals), and you want to fund the account with annual level payments, with the first payment being made oneyear from today and the last payment occurring the day of your retirement (30 total payments into the retirementaccount). a) How much do you need in the account on your retirement day to fund the expected semiannual withdrawals?b) How much does each annual payment need to be for the next 30 years to fund the retirement account?
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Your employer automatically puts 5 percent of your salary into a 401(k) retirement account each year. The account earns 8% interest. Suppose you just got the job, your starting salary is $50000, and you expect to receive a 3% raise each year. For simplicity, assume that interest earned and your raises are given as nominal rates and compound continuously. Find the value of your retirement account after 35 years Value = $
It is January 1, 2021 and you work for a company that deposits $7,000 on December 31st every year into a retirement plan. The first payment was yesterday. You will earn 6% in an annuity compounded annually, and there are no taxes due on the income in the account as long as you don't withdraw it. Assume you work at this company for your whole career, and you expect to retire soon after the end of 2040. How much will be in this account at close of business on December 31, 2040?

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