Question
In: Finance
You are saving for retirement. Starting this month, you will deposit $600 per month into a...
- You are saving for retirement. Starting this month, you will deposit $600 per month into a stock account that earns 9% interest. In ten years, you will begin depositing an additional $350 per month into a bond account that earns 6% interest. You expect interest rates to shift upwards 1.5% 20 years from now. This means, at that point, each of the accounts listed above will earn interest 1.5% higher than before. How much will you have when you retire if you plan to retire in 37 years?
Solutions
Expert Solution
| Stock account | |
| FV after 20 years | $400,732.12 |
| FV after 37 years | $2,706,649.60 |
| Bond Account | |
| FV after 20 years | $57,357.77 |
| FV after 37 years | $348,067.15 |
| Total amount on retirement | $3,054,716.75 |
jeff jeffy answered 3 months agoRelated Solutions
you are saving for retirement. starting this month you will deposit $600 per month into a...
you are saving for retirement. starting this month you will
deposit $600 per month into a stock account that earns 9% interest,
compounded monthly. In ten years, you will inhereit 100000 which
you will also put in the same account. a) If you plan to retire in
37 years, how much will you have when you retire?
thank you.
You are saving for retirement. Starting this month, you will deposit $600 per month into a...
You are saving for retirement. Starting this month, you will
deposit $600 per month into a stock account that earns 9% interest.
In ten years, you will begin depositing an additional $350 per
month into a bond account that earns 6% interest. You expect
interest rates to shift upwards 1.5% 20 years from now. This means,
at that point, each of the accounts listed above will earn interest
1.5% higher than before. How much will you have when you retire...
A month from now, you plan to begin saving for your retirement by making a deposit...
A
month from now, you plan to begin saving for your retirement by
making a deposit into a new savings account that has an expected
return of 5% compounded monthly. You plan to continue depositing
the same amount each month until you retire in 35 years. You expect
to make withdrawals in the amount of $15,000 from your savings
account every year for 40 years after you retire. Assume you were
asked to find the amount you will need to...
to save the retirement plan, Dr lola plans to deposit $200 every month in a saving...
to
save the retirement plan, Dr lola plans to deposit $200 every month
in a saving account from next month for 10 years. the banks pays 6%
interest rate compounding monthly. calculate the total balnce by
the end of year 10
You are 21 years old today. Starting one month from now, if you deposit $500 per...
You are 21 years old today. Starting one month from now, if you
deposit $500 per month for 32 years into your retirement account
which earns 0.7 percent per month, are you a millionaire by age of
53? Find out how much money you will have by age of 53. If that
number is greater than one million, then you are a millionaire by
that age.
You deposit $500 at the beginning of each month into your saving account every month. After...
You deposit $500 at the beginning of each month into your saving
account every month. After five years (60 deposits total), your
account value is $50,000. Assuming monthly compounding, what is
your monthly rate that the bank provides?
a. 1.22%
b. 1.14
c. 1.43%
d. 1.57%
6. You are saving up to buy a car. If you deposit $125 a month, every...
6. You are saving up to buy a car. If you deposit $125 a month,
every month, into a savings account earning 3% interest, compounded
monthly, what is the balance after 2 years?
Sue is preparing her financial retirement plan. Shedetermines that she will need $600 per month to...
Sue is preparing her financial retirement plan. She
determines that she will need $600 per month to live on in
retirement. Her goal is to retire at age 65 and to
collect annuity payments for 20 years. The current interest rate is
5%. Sue plans to withdraw the $600 at the beginning of each month.
How much money will Sue need to put in her annuity to accomplish
her goal?
Parker's retirement account has a current balance of $25,000. If he adds $600 per month to...
Parker's retirement account has a current balance of $25,000. If
he adds $600 per month to the account for the next 30 years, how
much will the account be worth? (Assume an interest rate of 11.00%
per year).
Group of answer choices
$688,310
$241,000
$2,350,414
$1,682,711
#1) You have begun saving for your retirement. Your starting salary is $60,000, and you invest...
#1)
You have begun saving for your retirement. Your starting salary is
$60,000, and you invest 10% of your salary each year.
A) If the retirement plan has historically made 10% per year, how
much will you have in your account after 40 years?
B) What will be your final contribution in year 40?
#2)
You have decided to purchase a house that needs quite a bit of work
right away. You estimate the following yearly maintenance and
upkeep costs:...
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