Question

In: Finance

To supplement your​ retirement, you estimate that you need to accumulate ​$270,000 exactly 35 years from...

To supplement your​ retirement, you estimate that you need to accumulate ​$270,000 exactly 35 years from today. You plan to make​ equal, end-of-year deposits into an account paying  11% annual interest. a.  How large must the annual deposits be to create the ​$270,000 fund by the end of 3535 ​years? b.  If you can afford to deposit only ​$660 per year into the​ account, how much will you have accumulated in 35 ​years?

Solutions

Expert Solution

jeff jeffy answered 3 months ago
Next > < Previous

Related Solutions

To supplement your planned retirement in exactly 42 years, you estimate that you need to accumulate...
To supplement your planned retirement in exactly 42 years, you estimate that you need to accumulate $1.0 million by the end of 42 years from today. You plan to make equal annual year-end deposits into your management retirement account, which has historically yielded a 4% annual return. 1) How large must the annual deposits be in order for you to retire with your goal by the end of 42 years? 2) If you can only afford to deposit $5,000 per...
Suppose you are 40 years old and plan to retire in exactly 20 years. Twenty-one years from now you will need to withdraw RM5,000 EVERY SIX MONTHS from a retirement fund to supplement your social daily life expenses.
Suppose you are 40 years old and plan to retire in exactly 20 years. Twenty-one years from now you will need to withdraw RM5,000 EVERY SIX MONTHS from a retirement fund to supplement your social daily life expenses. You expect to live to the age of 85. How much money should you place in the retirement fund every six months for the next 20 years to reach your retirement goal if you can earn 12 percent interest per year from...
You want to accumulate $1 million by your retirement date, which is 25 years from now....
You want to accumulate $1 million by your retirement date, which is 25 years from now. You will make 25 deposits in your bank, with the first occurring today. The bank pays 8% interest, compounded annually. You expect to receive annual raises of 3%, which will offset inflation, and you will let the amount you deposit each year also grow by 3% (i.e., your second deposit will be 3% greater than your first, the third will be 3% greater than...
Assume that you plan to retire in 35 years and that you estimate you will need...
Assume that you plan to retire in 35 years and that you estimate you will need an income of $100,000 at the beginning of each year for 30 years, following your retirement. You also plan to donate $1,000,000 to the Georgia Southern University College of Business to endow a scholarship in the name of your favorite finance professor. You will make this endowment exactly 5 years after you retire. Assume that you will earn 11.00 percent during your working years...
You are planning to save for your retirement in 35 years and the college tuition for...
You are planning to save for your retirement in 35 years and the college tuition for your two children. Your current monthly salary is $9,000 per month and you expect your salary to keep pace with inflation. You expect inflation to be a 3.5 percent EAR for the rest of your life. You plan to deposit 12 percent of your salary each month into a retirement account. Additionally, your employer will deposit 4 percent of your salary into the account....
Suppose you are exactly 25 years old and you are planning to save for your retirement...
Suppose you are exactly 25 years old and you are planning to save for your retirement which will happen in 40 years. You plan to deposit equal amount at the beginning of each month in your retirement account with the first saving made today. Assume the retirement account pays you 6% p.a. compounded monthly. a. If you would like to have $1,000,000 in your retirement account 40 years later when you are retired, how much will you have to deposit...
You estimate you need to supplement your social security payments with monthly withdrawals of $3,420.00 per...
You estimate you need to supplement your social security payments with monthly withdrawals of $3,420.00 per month from a private investment account during the first 24 years of your retirement. Assuming you can earn annual returns of 6.9% in your investment account during your retirement years, how much money do you need to have accumulated in your investment account by the day you retire in order to fund the aforementioned monthly withdrawals?
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 money for your retirement. You want toretire in 35 years...
You want to start saving money for your retirement. You want to retire in 35 years and think you will need to accumulate $1,500,000 to maintain your desired lifestyle after you retire. If you are confident you will be generating 6% annual rate of return, how much do you have to save each month?Group of answer choices$1,121.73$712.74$1,052.85$8,552.85
You are planning your retirement in 35 years. You currently have $8,000 and plan to add...
You are planning your retirement in 35 years. You currently have $8,000 and plan to add $3,000 at the end of each of the next 35 years. You expect to earn a return of 8.5% per year from your retirement investment account. When you retire in 35 years, you will transfer your money to an annuity account managed by an insurance company that pays a return of 3.5% per year. This annuity account will allow you to withdraw an equal...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT