Question

In: Finance

you are saving for retirement. to live comfortably, you decide you will need to save $1...

you are saving for retirement. to live comfortably, you decide you will need to save $1 million by the time you are 65. today is your 21st birthday and you decide that starting todahy and continuing on every birthday up to and including your 65th birthday that you will put the same amount into a savings account. If the interest rate is 8% how much must you set aside each year to make sure that you have $1 million in the account on your 65th birthday?

Solutions

Expert Solution

Calculations-

Please upvote if the ans is helpful.In case of doubt,do comment.Thanks.

jeff jeffy answered 2 years ago
Next > < Previous

Related Solutions

You are saving for retirement. To live comfortably, you decide you will need to save $1...
You are saving for retirement. To live comfortably, you decide you will need to save $1 million by the time you are 65. Today is your 33rd birthday, and you decide, starting today and continuing on every birthday up to and including your 65th birthday, that you will put the same amount into a savings account. If the interest rate is 3%, how much must you set aside each year to make sure that you will have $1 million in...
You are saving for retirement. To live​ comfortably, you decide you will need to save $...
You are saving for retirement. To live​ comfortably, you decide you will need to save $ 4 million by the time you are 65. Today is your 35 th ​birthday, and you​ decide, starting today and continuing on every birthday up to and including your 65 th ​birthday, that you will put the same amount into a savings account. If the interest rate is 8 %​, how much must you set aside each year to make sure that you will...
You are saving for retirement. To live​ comfortably, you decide you will need to save $2...
You are saving for retirement. To live​ comfortably, you decide you will need to save $2 million by the time you are 65. Today is your 33rd birthday, and you​ decide, starting today and continuing on every birthday up to and including your 65th ​birthday, that you will put the same amount into a savings account. If the interest rate is 6%​, how much must you set aside each year to make sure that you will have $2 million in...
You are saving for retirement. To live​ comfortably, you decide you will need to save $4...
You are saving for retirement. To live​ comfortably, you decide you will need to save $4 million by the time you are 65. Today is your 22nd ​birthday, and you​ decide, starting today and continuing on every birthday up to and including your 65th ​birthday, that you will put the same amount into a savings account. If the interest rate is 8%​, how much must you set aside each year to make sure that you will have $4 million in...
You are saving for retirement. To live​ comfortably, you decide you will need to save $3,000,000...
You are saving for retirement. To live​ comfortably, you decide you will need to save $3,000,000 by the time you are 65. Today is your 27th ​birthday, and you​ decide, starting today and continuing on every birthday up to and including your 65th ​birthday, that you will put the same amount into a savings account. If the interest rate is 4%​, how much must you set aside each year to make sure that you will have $3,000,000 in the account...
You are saving for retirement. To live comfortably, you decide you will need to save $2...
You are saving for retirement. To live comfortably, you decide you will need to save $2 million by the time you are 65. Today is your 30th birthday, and you decide, starting today and continuing on every birthday up to and including your 65th birthday, that you will put the same amount into a savings account. If the interest rate is 5%, how much must you set aside each year to make sure that you will have $2 million in...
You are saving for retirement. To live comfortably, you decidethat you will need $1.5 million...
You are saving for retirement. To live comfortably, you decide that you will need $1.5 million dollars by the time you are 65. If you assume you are able to do that, and will live 15 more years (until age 80), the amount you can withdraw in each of those years at an interest rate of 5% before your retirement fund is empty is closest to: Answers: $89,522 $144,513 $105,714 $200,606
You are trying to decide how much to save for retirement. Assume you plan to save...
You are trying to decide how much to save for retirement. Assume you plan to save $8,000 per year with the first investment made one year from now. You think you can earn 5.5​% per year on your investments and you plan to retire in 32 ​years, immediately after making your last $8,000 investment. a. How much will you have in your retirement account on the day you​ retire? b.​ If, instead of investing $8,000 per​ year, you wanted to...
You are trying to decide how much to save for retirement. Assume you plan to save...
You are trying to decide how much to save for retirement. Assume you plan to save $ 6,500 per year with the first investment made one year from now. You think you can earn 5.0​% per year on your investments and you plan to retire in 36 ​years, immediately after making your last $ 6,500 investment. a. How much will you have in your retirement account on the day you​ retire? b.​ If, instead of investing $ 6,500 per​ year,...
You are trying to decide how much to save for retirement. Assume you plan to save...
You are trying to decide how much to save for retirement. Assume you plan to save $5,000 per year with the first investment made one year from now. You think you can earn 10.0​% per year on your investments and you plan to retire in   43 ​years, immediately after making your last $5,000 investment. a. How much will you have in your retirement account on the day you​ retire? b.​ If, instead of investing $5,000 per​ year, you wanted to...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT