You want to be able to withdraw $30,000 each year for 20 years. Your account earns...

You want to be able to withdraw $30,000 each year for 20 years. Your account earns 8% interest. a) How much do you need in your account at the beginning? $ b) How much total money will you pull out of the account? $ c) How much of that money is interest? $

Solutions

Expert Solution

Answer-

Amount withdrawn each year = PMT = $ 30000
Number of years = N = 20
Future value = $ 0
Interest ratte = 8 %

Present value = PV = ?

Using financial calculator we get

a) How much do you need in your account at the beginning = PV = $ 294544.42

b) How much total money will you pull out of the account?

The amount that will be pulled out of the account = $ 30000 x 20 = $ 600000

c) How much of that money is interest?

Interest = Total amount that is pulled out of the account - Amount at the beginning

Interest = $ 600000 - $ 294544.42 = $ 305455.58

jeff jeffy answered 2 years ago

Next > < Previous

Related Solutions

12.You want to be able to withdraw $30,000 each year for 30 years. Your account earns...

12.You want to be able to withdraw $30,000 each year for 30 years. Your account earns 6.3% interest. Round all answers to the nearest cent as needed. a) How much do you need in your account at the beginning? $ b) How much total money will you pull out of the account? $ c) How much of that money is interest? $ 13. You have $300,000 saved for retirement. Your account earns 5.6% interest. How much will you be able...

You want to be able to withdraw $30,000 from your account each year for 20 years...

You want to be able to withdraw $30,000 from your account each year for 20 years after you retire. If you expect to retire in 30 years and your account earns 4.8% interest while saving for retirement and 4.7% interest while retired: Round your answers to the nearest cent as needed. a) How much will you need to have when you retire? $ b) How much will you need to deposit each month until retirement to achieve your retirement goals?...

You want to be able to withdraw $45000 each year for 15 years. Your account earns...

You want to be able to withdraw $45000 each year for 15 years. Your account earns 4% interest. How much do you need in your account at the beginning?

You want to be able to withdraw $45,000 each year for 30 years. Your account earns...

You want to be able to withdraw $45,000 each year for 30 years. Your account earns 5% interest. a) How much do you need in your account at the beginning? $ b) How much total money will you pull out of the account? $ c) How much of that money is interest?

You want to be able to withdraw $50,000 from your account each year for 20 years...

You want to be able to withdraw $50,000 from your account each year for 20 years after you retire. If you expect to retire in 30 years and your account earns 5% interest while saving for retirement and 4.1% interest while retired: Round your answers to the nearest cent as needed. a) How much will you need to have when you retire? $ b) How much will you need to deposit each month until retirement to achieve your retirement goals?...

You want to be able to withdraw $35,000 from your account each year for 20 years...

You want to be able to withdraw $35,000 from your account each year for 20 years after you retire. If you expect to retire in 15 years and your account earns 5.8% interest while saving for retirement and 4.7% interest while retired: Round your answers to the nearest cent as needed. a) How much will you need to have when you retire? $ b) How much will you need to deposit each month until retirement to achieve your retirement goals?...

20. You want to be able to withdraw $25,000 from your account each year for 30...

20. You want to be able to withdraw $25,000 from your account each year for 30 years after you retire. If you expect to retire in 15 years and your account earns 7.4% interest while saving for retirement and 5.3% interest while retired: Round your answers to the nearest cent as needed. a) How much will you need to have when you retire? $ b) How much will you need to deposit each month until retirement to achieve your retirement...

You want to be able to withdraw $30,000 from youraccount each year for 25 years...

You want to be able to withdraw $30,000 from your account each year for 25 years after you retire. If you expect to retire in 20 years and your account earns 6.1% interest while saving for retirement and 5% interest while retired:Round your answers to the nearest cent as needed.a) How much will you need to have when you retire? $ b) How much will you need to deposit each month until retirement to achieve your retirement goals?$ c) How much did you...

You want to be able to withdraw $40,000 from your account each year for 15 years...

You want to be able to withdraw $40,000 from your account each year for 15 years after you retire. If you expect to retire in 25 years and your account earns 7.6% interest while saving for retirement and 6.9% interest while retired: Round your answers to the nearest cent as needed. a) How much will you need to have when you retire? $ b) How much will you need to deposit each month until retirement to achieve your retirement goals?...

You want to be able to withdraw $45,000 from your account each year for 30 years...

You want to be able to withdraw $45,000 from your account each year for 30 years after you retire. If you expect to retire in 25 years and your account earns 7.9% interest while saving for retirement and 7.8% interest while retired: Round your answers to the nearest cent as needed. a) How much will you need to have when you retire? $ b) How much will you need to deposit each month until retirement to achieve your retirement goals?...

Subjects