Question

In: Finance

You want to know what the value of your retirement fund will be when you retire if you contribute regularly to your 401(k). The feature that will help you calculate this is:

1.

You want to know what the value of your retirement fund will be when you retire if you contribute regularly to your 401(k). The feature that will help you calculate this is:

a. the present value (PV) function.

b. the future value (FV) function.

c. the payment (PMT) function.

d. the interest (INT) function.

2.

You are creating a table that shows the monthly payment on a house, comparing 15-year, 20-year, and 30-year mortgages at a variety of interest rates. Which of the following elements of the formula should use absolute cell references?

a. The amount financed

b. The length of the mortgages

c. The interest rates

d. Both the interest rates and the length of the mortgages

Solutions

Expert Solution

Answer 1)

You want to know what the value of your retirement fund will be when you retire if you contribute regularly to your 401(k). The feature that will help you calculate this is . the future value (FV) function

Option b is correct.

Answer 2)

You are creating a table that shows the maonthly payment on a house, comparing 15-year, 20-year, and 30-year mortgages at a variety of interest rates. Which of the following elements of the formula should use absolute cell references : - The Amount financed.

absolute cell references is given when you want to keep something constant. Here the loan amount will be constant.

Option a is correct.

jeff jeffy answered 2 years ago
Next > < Previous

Related Solutions

Q9. You are ready to retire. A glance at your 401(k) statement indicates that you have...
Q9. You are ready to retire. A glance at your 401(k) statement indicates that you have $2,750,000. If the funds remain in an account earning 4.5% annually, how much could you withdraw at the end of each year for the next 30 years? Round to two decimal places. Q10. If you wish to accumulate $280,000 in the child's college fund after 18 years, and can invest at a 7.5% annual rate, how much must you invest at the end of...
a) What is your opinion about 401(K) and IRA? b) How taxes can impact your retirement...
a) What is your opinion about 401(K) and IRA? b) How taxes can impact your retirement income and how can you stretch your retirement funds?
Suppose you have determined that you want to have retirement savings of $5,000,000 when you retire...
Suppose you have determined that you want to have retirement savings of $5,000,000 when you retire at age 65, 42 years after you graduate, at age 23. Looking at the long history of the market, you are confident that you can earn at 10% per annum on a well-diversified equity portfolio. Required: a) Calculate much would you have to save annually at the end of each year for the next 42 years to reach your $5,000,000 goal assuming a 10%...
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...
If you invest for your retirement solely through tax-advantaged accounts like IRAs or 401(k) plans, do...
If you invest for your retirement solely through tax-advantaged accounts like IRAs or 401(k) plans, do you care about a firm's payout policy? If so, under what circumstances or assumptions? Imagine a very simple firm with the following balance sheet: Assets: Cash= 10, PP&E= 90, Total Assets=100; Liabilities: Debt=30, Retained Earnings=35, Paid-in Capital= 35, Total Liabilities and Equity=100. Suppose the firm conducts a $5 share repurchase. What would the firm's balance sheet look like? Now suppose that instead of a...
You wish to retire in 20 years. Currently, your pre-retirement fund has RM50,000 in a savings...
You wish to retire in 20 years. Currently, your pre-retirement fund has RM50,000 in a savings account yielding 3.0% annually and RM300,000 quality stocks yielding 11.0% annually. Furthermore, you expect to add RM8,000 to the savings account and RM15,000 to your stock portfolios at the end of each year in the next 20 year. You will keep this fund until the retirement date. Calculate the overall rate of return per year that you must earn on your post-retirement fund if...
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 have 34 years left until retirement and want to retire with $4.6 million. Your salary...
You have 34 years left until retirement and want to retire with $4.6 million. Your salary is paid annually, and you will receive $72,000 at the end of the current year. Your salary will increase at 4.5 percent per year, and you can earn a 12.5 percent return on the money you invest. If you save a constant percentage of your salary, what percentage of your salary must you save each year?
You are planning to retire when you turn 65. You currently have $25,000 in your retirement...
You are planning to retire when you turn 65. You currently have $25,000 in your retirement account. Based on actuary tables, you expect to live to be 100 years old. During each year of retirement you want to be able to withdraw $50,000 from your retirement account (at the beginning of the year). The interest rate is 3%. You plan to make deposits into your retirement account on your birthday, each year until you retire. How much will you need...
You are discussing your 401(k) with Dan Ervin when he mentions that Sarah Brown, a representative...
You are discussing your 401(k) with Dan Ervin when he mentions that Sarah Brown, a representative from Bledsoe Financial Services, is visiting East Coast Yachts today. You decide that you should meet with Sarah, so Dan sets up an appointment for you later in the day. When you sit down with Sarah, she discusses the various investment options available in the company’s 401(k) account. You mention to Sarah that you researched East Coast Yachts before you accepted your new job....
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT