You decide that, starting when you are 20 years old, you will save $5 a day...

You decide that, starting when you are 20 years old, you will save $5 a day for retirement. At the end of the year, you invest the accumulated savings ($1,825) in a brokerage account with an expected annual return of 8%. If you continue the practice every year until you are 65, how much money will you have? Please use two decimals rounded up.

Expert Solution

Deposit amount (P) = 1825

Number of deposits = n= 65-20= 45

Rate= r= 8% pa

Accumulated amount at the age of 65= Future Value of annuity = A* ((1+rate)^n-1)/rate

= 1825*((1+8%)^45-1)/8%

=1825*386.5056174

= $705372.75

jeff jeffy answered 2 years ago

You are 20 years old now and you will save $10,000 annually for the next 30...

You are 20 years old now and you will save $10,000 annually for the next 30 years and the interest rate is 9%. How much money you will have when you are 50 years old? A. $1,363,075.39 B. $899,937.73 C. $1,112,577.83 D. $998,181.47 What is the PV of $2,000 to be received in 10 years at an interest rate of 8%? A. $980.25 B. $926.39 C. $783.12 D. $1,000

2. A 20-year old student wants to save $3 a day for her retirement. Every day...

2. A 20-year old student wants to save $3 a day for her retirement. Every day she places $3 in a drawer. At the end of the year, she invests the accumulated savings ($1,095) in a brokerage account with an expected annual return of 12%. a) How much money will she save when she turns 65 years old? b) If she does not start saving until she is 40 years old, how much will she have by age 65?

You are 20 years old and plan to purchase a house when you are 35 .a....

You are 20 years old and plan to purchase a house when you are 35 .a. The current price of the house you want to purchase is $275,000 and the price is expected to increase by 3% per year. How much will the house cost when you are 35? b. When you are 35, the bank will require a cash down-payment of 10% of the house price to obtain a mortgage. How much will you need to save each year...

You decide to save $1,000 at the end of each year for the next20 years....

You decide to save $1,000 at the end of each year for the next 20 years. If your savings earn an annual interest rate of 2%, how much will you have saved up by the end of 20 years? Round to the nearest cent.

a. “If you are 18 years of age and save RM1.00 each day for the rest...

a. “If you are 18 years of age and save RM1.00 each day for the rest of your life, you can become a millionaire”. Let’s assume that you live to age 65 and that the annual interest rate is 10 %. Assuming that the total day per year are 365 day. Provide a proven of this statement b) A father, on the day his son is born, wishes to determine what lump sum amount would have to be paid into...

You decide to save $7,000 at the end of each year for the next 11 years....

You decide to save $7,000 at the end of each year for the next 11 years. If your savings earn an annual interest rate of 4%, how much will you have saved up by the end of 11 years? Round to the nearest cent.

you decide to save $2000 at the end of each year for the next 18 years...

you decide to save $2000 at the end of each year for the next 18 years if your savings earn an annual interest rate of 2% how much will you have saved up by the end of 18 years round to the nearest cent

You are planning to save for retirement over the next 20 years. To do this, you...

You are planning to save for retirement over the next 20 years. To do this, you will invest $1,100 a month in a stock account and $800 a month in a bond account. The return of the stock account is expected to be 10 percent, and the bond account will pay 6 percent. When you retire, you will combine your money into an account with a return of 8 percent. How much can you withdraw each month from your account...

You are 20 years old and you want to retire when you have saves$1 million....

You are 20 years old and you want to retire when you have saves $1 million. You have inherited $250,000 and will not add any other savings to that amount. The money will be conservatively invested at 6% per annum. At what age will you be able to retire a millionaire?

2. You are 20 years old and anitcipate you will have your first child when you...

2. You are 20 years old and anitcipate you will have your first child when you are 25 years old. At 25 years old, you want to save at the end of each month for the next 18 years. You anticipate that when your child goes to college, tuition room and board to be paid at the beginning of each year will cost $20,000. Education inflation is expected to be at 4% each year. If you can earn 8.5% on...

Question