Question

In: Finance

Suppose you plan to retire in 40 years. If you make 10 annual investments of $...

Suppose you plan to retire in 40 years. If you make 10 annual investments of $ 5,000 into your retirement account for the first 10 years, and no more contributions to the account for the remaining 30 years. If the retirement account earns a fixed 11% annual interest, how much will you have at your retirement? Round it to two decimal places without the $ sign, e.g., 1234567.89.

Solutions

Expert Solution

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE


Related Solutions

Suppose you plan to retire in 40 years. If you make 10 annual investments of $...
Suppose you plan to retire in 40 years. If you make 10 annual investments of $ 1,000 into your retirement account for the first 10 years, and no more contributions to the account for the remaining 30 years. If the retirement account earns a fixed 5% annual interest, how much will you have at your retirement? Round it to two decimal places without the $ sign, e.g., 1234567.89.
you will work for 40 years then you will retire. when yiu retire, you will make...
you will work for 40 years then you will retire. when yiu retire, you will make the first of 40 annual investments of $7549 in a fund. the fund is expected to return 9.9% per year, how much will you have on the day that you make your last deposit?
You plan to retire in 40 years. After that, you want to receive an annuity of...
You plan to retire in 40 years. After that, you want to receive an annuity of 5000 per month for 25 years, beginning immediately upon retirement. If you can earn 6% per year, compounded monthly, how much must you invest at the end of each month before retirement?
You will retire in 40 years. At that time you will begin making annual withdrawals and...
You will retire in 40 years. At that time you will begin making annual withdrawals and the first withdrawal will need to have the purchasing power that $127,849 has today. You will withdraw the same amount of money each year of retirement (and you recognize that its purchasing power will fall as inflation continues). You plan to live for 24 years during retirement, necessitating 24 withdrawals. Inflation equals 6% per year. Obviously, you will need to save (and invest) money...
3. You plan to retire in 40 years. Upon retirement, you plan to spend US$40,000.00 per...
3. You plan to retire in 40 years. Upon retirement, you plan to spend US$40,000.00 per year for 30 years. a. At a discount rate of 7.00% per year, how much do you need to have saved up in 40 years if you are to meet up with your retirement objectives? b. Using the answer to part (a) and a compound rate of 8.00%, how much would you have to save yearly for the next 40 years if you are...
You plan to work for 40 years and then retire using a 25-year annuity. You want...
You plan to work for 40 years and then retire using a 25-year annuity. You want to arrange a retirement income of $4700 per month. You have access to an account that pays an APR of 8.4% compounded monthly. What size nest egg do you need to achieve the desired monthly yield? (Round your answer to the nearest cent.)
You are planning to retire in 40-years. You plan on putting aside $300 each month and...
You are planning to retire in 40-years. You plan on putting aside $300 each month and increase that saving by 0.5% each month. Suppose your investments earn 1% per month, what will you accumulate after 40 years if you start saving one month from and stop after a last installment in 40 years. What is the Effective Annual rate for a housing loan at 6% APR with monthly compounding? What is the APR for a loan when the EAR is...
You are planning to retire in 40-years. You plan on putting aside $300 each month and...
You are planning to retire in 40-years. You plan on putting aside $300 each month and increase that saving by 0.5% each month. Suppose your investments earn 1% per month, what will you accumulate after 40 years if you start saving one month from and stop after a last installment in 40 years.
You are currently 40 years old and intend to retire at age 60. To make your...
You are currently 40 years old and intend to retire at age 60. To make your retirement easier, you intend to start a retirement account. At the END of each of years, you will deposit some money to your retirement account till your retire. You expect the account will earn 7% per year. After retirement at age 60, you want to withdraw $10,000 from your retirement account at the END of each year for 10 years. How much money should...
A couple will retire in 40 years; they plan to spend about $37,000 a year in...
A couple will retire in 40 years; they plan to spend about $37,000 a year in retirement, which should last about 20 years. They believe that they can earn 7% interest on retirement savings. a. If they make annual payments into a savings plan, how much will they need to save each year? Assume the first payment comes in 1 year. (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. How would the answer to part...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT