Question

In: Advanced Math

You have just started a new job that offers a retirement savings account. You have two...

You have just started a new job that offers a retirement savings account. You have two options: You can invest 5% of your monthly wages at 2% OR You can invest 4% of your monthly wages at 4%. Both are compounded monthly. b. Assume that you will always make $45,000 annually, how much will you have saved with the better plan after 15 years? c.Assume that you will always make $45,000 annually, how much will you have saved with the better plan after 25 years?

Solutions

Expert Solution

Colby Messinger answered 1 year ago
Next > < Previous

Related Solutions

You have just started a new job and are thrilled to learn that your new employer...
You have just started a new job and are thrilled to learn that your new employer offers a 401(k) retirement plan to its employees. Your annual salary is $40,000. Assume the IRS allows you to contribute up to $24,000 to your 401(k). You’ve decided to contribute 7% of your annual salary to the plan. Questions: How much more money would you need to contribute to meet the maximum allowable contribution set forth by the IRS? The company offers you a...
Assume that you have 40 years until retirement and have just started your first job. Once...
Assume that you have 40 years until retirement and have just started your first job. Once you retire, you anticipate that you will live for 30 additional years. Assume that you will require $100,000 per year to support yourself in retirement. All investments that you make will go into and stay an account that returns 7.8% per year (however much you have at retirement will sit that account and continue to accrue interest on the remaining balance. How much will...
1. John has started a new job and wants to open a retirement account. He is...
1. John has started a new job and wants to open a retirement account. He is now 26 years old and plans to retire if he is over 65. For this, he is considering depositing $ 2815 retirement accounts annually. Annual interest yield is 2%. a. How much money will he save when he retires? Calculate by drawing a cash flow diagram. b. If John wanted to save $ 150,000, how much money would he have to deposit into his...
You have just started a new job and your employer has enrolled you in KiwiSaver. This...
You have just started a new job and your employer has enrolled you in KiwiSaver. This is the first time you have been enrolled in KiwiSaver and you decide not to “opt out”. You are interested in estimating how much your KiwiSaver fund could be worth when you retire. You make the following assumptions: • You have just turned 30 and will retire in exactly 35 years when you are 65. • Your salary is $50,000 this year and you...
You have just started a new job and your employer has enrolled you in KiwiSaver. This...
You have just started a new job and your employer has enrolled you in KiwiSaver. This is the first time you have been enrolled in KiwiSaver and you decide not to “opt out”. You are interested in estimating how much your KiwiSaver fund could be worth when you retire. You make the following assumptions: • You have just turned 30 and will retire in exactly 35 years when you are 65. • Your salary is $50,000 this year and you...
You have just started a new job and your employer has enrolled you in KiwiSaver. This...
You have just started a new job and your employer has enrolled you in KiwiSaver. This is the first time you have been enrolled in KiwiSaver and you decide not to “opt out”. You are interested in estimating how much your KiwiSaver fund could be worth when you retire. You make the following assumptions: • You have just turned 30 and will retire in exactly 35 years when you are 65. • Your salary is $50,000 this year and you...
Task 1 You have just started a new job and your employer has enrolled you in...
Task 1 You have just started a new job and your employer has enrolled you in ANZ savings fund scheme. This is the first time you have been enrolled in the savings fund scheme of ANZ and you decide not to “opt out”. You are interested in estimating how much your savings fund could be worth when you retire. You make the following assumptions: • You have just turned 30 and will retire in exactly 35 years when you are...
Today is March 30, 2018, and you have just started your new job with a financial...
Today is March 30, 2018, and you have just started your new job with a financial planning firm. In addition to studying for all your license exams, you have been asked to review a portion of a client’s stock portfolio to determine the risk/return profiles of 12 stocks in the portfolio. Unfortunately, your small firm cannot afford the expensive databases that would provide all this information with a few simple keystrokes, but that’s why they hired you. Specifically, you have...
You have just received an endowment and placed this money in a savings account at an...
You have just received an endowment and placed this money in a savings account at an annual rate of 13.58 percent. You are going to withdraw the following cash flows for the next five years. End of year 1.   $7,512 2.   $8,140 3.   $4,455 4.   $3,122 5.   $1,857 How much is the endowment that you received? Round the answer to two decimal places.
Your new job offers a savings plan that pays 0.25 percent in interest each month. You...
Your new job offers a savings plan that pays 0.25 percent in interest each month. You can't participate in the plan, however, until you have 7 years with the company.  At that time you will start saving $1000 a month for the next 21 years. How much will you have in this savings account in 28 years? Round your answer to two decimals. $ 748,582.54 748,582.54 Incorrect Another perk of your new job is that, after 7 years with the company,...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT