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
jeff jeffy answered 2 years agoRelated 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...
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