You’ve decided that you want $1,000,000 in your investment account when you retire 25 years from...

You’ve decided that you want $1,000,000 in your investment account when you retire 25 years from today. If you already have $100,000 in the account, and it earns a nominal rate of 8% per year, compounded quarterly, how much money will you have to deposit into that account per year in order to reach your goal?

Expert Solution

jeff jeffy answered 7 months ago

Suppose you and your husband have decided that when you retire in 15 years you want...

Suppose you and your husband have decided that when you retire in 15 years you want to take a trip around the world for a year. You realize that you need to begin saving now for this trip of a lifetime. You want to be able to deposit annually (end of year payments) a fixed amount in an interest bearing account. It is estimated that monthly after that you will need to withdraw $5000 monthly for spending money. You will...

You have decided that you want to be a millionaire when you retire in 44 years....

You have decided that you want to be a millionaire when you retire in 44 years. 1. .If you can earn an annual return of 11.22 percent, how much do you have to invest today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) 2. .What if you can earn an annual return of 5.61 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) 1. amount to...

You want to have $1,000,000 when you retire in 30 years. You expect to earn 12%...

You want to have $1,000,000 when you retire in 30 years. You expect to earn 12% compounded monthly over the entire 30-year period. How much extra money per month must you deposit if you choose to fund using an ordinary annuity technique rather than an annuity due technique?

You want to have $1,000,000 in your retirement account 30 years from today. Your opportunity cost...

You want to have $1,000,000 in your retirement account 30 years from today. Your opportunity cost of capital is an APR of 7% with annual compounding. How much do you need to save each year if you limit yourself to 20 annual payments in years 11-30?

You want to retire 35 years from today with $2.5 million in your Individual Retirement Account...

You want to retire 35 years from today with $2.5 million in your Individual Retirement Account (IRA). You currently have 100,000.00 saved in your IRA which is earning 9.00% annually. What amount would you need to save and deposit at the beginning of each quarter to achieve your retirement goal? Note that you are making the deposits quarterly, not annually.

You want to start saving for retirement. Your goal is to retire in 25 years. Assume...

You want to start saving for retirement. Your goal is to retire in 25 years. Assume that you have $25,000 to invest now and that you will contribute $4,800 per year. What will your account be worth when you retire if you can earn 6% a year? What will your account be worth if the 6% annual return is compounded monthly and instead of contributing $4,800 per year, you contribute $400 monthly (you still start with $25,000) Assume all payments...

You want to have $3 million in real dollars in an account when you retire in 30 years

You want to have $3 million in real dollars in an account when you retire in 30 years. The nominal return on your investment is 13 percent and the inflation rate is 3.7 percent. What real amount must you deposit each year to achieve your goal? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Deposit amount = _______

When you retire, your company promises to pay you $1500 a month for 25 years. What...

When you retire, your company promises to pay you $1500 a month for 25 years. What is the value of this retirement annuity to you today, assuming 3%?

You want to have $2.5 million in real dollars in an account when you retire in...

You want to have $2.5 million in real dollars in an account when you retire in 40 years. The nominal return on your investment is 10.3 percent and the inflation rate is 3.7 percent. What real amount must you deposit each year to achieve your goal? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

You want to have $3 million in real dollars in an account when you retire in...

You want to have $3 million in real dollars in an account when you retire in 30 years. The nominal return on your investment is 11 percent and the inflation rate is 2.5 percent. What real amount must you deposit each year to achieve your goal?

Question