Question

In: Finance

You plan to graduate at age 23 and start saving for retirement at age 24. You...

You plan to graduate at age 23 and start saving for retirement at age 24. You save as follows:

Age 24-35 $6,000 per year
Age 36-50 $5,000 per year
Age 51-60 $2,000 per year
Age 61-65 $8,000 per year

How much money will you be able to withdrawal from ages 66-90 as regular amounts assuming all money earns 6.5% interest? Please use excel and show equations

Solutions

Expert Solution

Formulae


Related Solutions

You begin saving for retirement at age 25, and you plan to retire at age 60....
You begin saving for retirement at age 25, and you plan to retire at age 60. You want to deposit a certain amount each month into an account that pays an APR of 3% compounded monthly. Make a table that shows the amount you must deposit each month in terms of the nest egg you desire to have when you retire. (Round your answers to the nearest cent.) Nest egg size Needed deposit $100,000 $ $200,000 $ $300,000 $ $400,000...
4. At age 35 you start saving for retirement. Your investment plan pays 6% APR compounded...
4. At age 35 you start saving for retirement. Your investment plan pays 6% APR compounded monthly and you want to have $2,000,000 when you retire at age 65.         a) How much do you need to save each month?         b) Suppose you had started saving when you were 30 years old. How much would you need to save each month?         c) Suppose you had started saving when you were 25 years old. How much would you need...
You are 25 years old and decide to start saving for your retirement. You plan to...
You are 25 years old and decide to start saving for your retirement. You plan to save $3000 at the end of each year (so the first deposit will be one year from now), and will make the last deposit when you retire at age 65. Suppose you earn 10% per year on your retirement savings. How much will you have saved for retirement? How much will you have saved if you wait until age 35 to start saving (again,...
You are 25 years old and decide to start saving for your retirement. You plan to...
You are 25 years old and decide to start saving for your retirement. You plan to save $5,000 at the end of each year​ (so the first deposit will be one year from​ now), and will make the last deposit when you retire at age 65. Suppose you earn 8% per year on your retirement savings. a. How much will you have saved for​ retirement? The amount that you will have accumulated for retirement is _____ b. How much will...
Rhoda, age​ 25, would like to start saving for retirement. She will be able to save​...
Rhoda, age​ 25, would like to start saving for retirement. She will be able to save​ $400 per month beginning immediately. She will retire once she has saved​ $1 million. Her investment portfolio will earn a rate of return of​ 8% compounded monthly during the entire time that she is saving. Approximately how many years will it take her to reach her savings​ goal?
Tom decides to get an early start on retirement saving and, beginning at age 22, he...
Tom decides to get an early start on retirement saving and, beginning at age 22, he invests $4,000 per year in a Roth IRA for 10 years in a row. At that point, he stops contributing to the account but leaves the money invested until age 65 (a period of 33 years). Harry doesn’t start investing until he’s 32 but from then on invests $5,000 in a Roth IRA each year for 33 years until retirement at age 65. If...
You want to start saving for retirement. You currently have $7,000 set aside for retirement in...
You want to start saving for retirement. You currently have $7,000 set aside for retirement in an IRA. You want to contribute an additional $300 per month for the next 5 years (10%). Then, you believe that you can invest $1,000 per month for the next 45 years (10%). How much would you have at retirement if you would do this?
Suppose you start saving for retirement by depositing $4,000 EVERY YEAR into your retirement account. If...
Suppose you start saving for retirement by depositing $4,000 EVERY YEAR into your retirement account. If your annual return is 8%, how much will you have in 45 years? How much would you have if all deposits were made on the FIRST of the year (as opposed to the last day of the year)? (please solve by hand and not excel)
Your friend tells you that she wants to start saving for retirement by investing in the...
Your friend tells you that she wants to start saving for retirement by investing in the stock market. Given that you have taken this finance class, she asks you for advice about what stocks she should buy. What would you tell her?
MF has decided to start saving for his retirement. He will start at the end of...
MF has decided to start saving for his retirement. He will start at the end of this year saving $2000 a year for 10 years and $5,000 a year for the next 15 years after that. When he has finished with this period, he will still have 10 years left until he retires. The interest rate before retirement is 9.5% interest per year. After he retires the expected interest rate is 8%. If he wants to withdraw from his account...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT