Question

In: Finance

Justin is planning on retirement investment, if invested at 6 percent per year (6%p.a. is APR,...

Justin is planning on retirement investment, if invested at 6 percent per year (6%p.a. is APR, interest compounded monthly), he wish to have $3,500 of monthly income for 30 years. To date, he has saved $100,000, but he still has 20 years until he retires.
He would need to have in 20 years time to yield the $3,500 monthly payments for an additional 30 years. Calculate how much shall be accumulated at the time of retirement to meet his needs.
(Provide your answer up to 2 decimal places, give your answer in a positive number)

Solutions

Expert Solution

Formulae

jeff jeffy answered 2 years ago
Next > < Previous

Related Solutions

Justin is planning on retirement investment, if invested at 6 percent per year (6%p.a. is APR,...
Justin is planning on retirement investment, if invested at 6 percent per year (6%p.a. is APR, interest compounded monthly), he wish to have $3,500 of monthly income for 30 years. To date, he has saved $100,000, but he still has 20 years until he retires. How much money does he need to contribute per month to reach his goal? (Give your answer in 2 decimal places, provide your answer as a positive number.)
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...
If 38,300 dollars is invested at an interest rate of 7 percent per year, find the...
If 38,300 dollars is invested at an interest rate of 7 percent per year, find the interest earned for the investment at the end of 5 years for the following compounding methods. (a) Annual:    (b) Semiannual: (c) Monthly: (d) Daily:
Allyson Gomez invests $8,000 today in an investment that earns 6 percent per year (compounded annually)...
Allyson Gomez invests $8,000 today in an investment that earns 6 percent per year (compounded annually) for 25 years. The average inflation rate is expected to be 1.8 percent per year. She will have much more than $8,000 in 25 years BUT what would this future amount be if expressed in today’s dollars? a. $34,335 b. $21,981 c. $52,306 d. $12,496 e. $21,839
Alex turned 30 today, and she is planning to save $5,500 per year for retirement, with...
Alex turned 30 today, and she is planning to save $5,500 per year for retirement, with the first deposit to be made 1 year from today. She will invest in a mutual fund that will provide a return of 4% per year. She plans to retire 30 years from today, when she turns 60, and she expects to live for 30 years after retirement, to age 90. Under these assumptions, how much can she spend in each year after she...
You make a $7,000 deposit to an investment account today. The investment earns 6% p.a compounding...
You make a $7,000 deposit to an investment account today. The investment earns 6% p.a compounding monthly for the first 12 months, then it earns 13%p.a compounding monthly for the next 3 years. At the end of the 4 years the balance in the account is (to the nearest whole dollar; don't use $ sign or commas)
A bank invested $50 million in a one-year asset paying 10 percent interest per year and...
A bank invested $50 million in a one-year asset paying 10 percent interest per year and simultaneously issued a $50 million, two-year liability paying 8 percent interest per year to pay for it. • Is the bank short funded or long funded? • What is the bank’s net interest income in year one • What will be the bank’s net interest income in year two if at the end of the first year all interest rates have decreased by 1.5...
Your sister turned 35 today, and she is planning to save $6,500 per year for retirement,...
Your sister turned 35 today, and she is planning to save $6,500 per year for retirement, with the first deposit to be made one year from today. She will invest in a mutual fund that will provide a return of 9.25% per year. She plans to retire 30 years from today, when she turns 65, and she expects to live for 25 years after retirement, to age 90. Under these assumptions, how much can she spend in each year after...
Your sister turned 35 today, and she is planning to save $65,000 per year for retirement,...
Your sister turned 35 today, and she is planning to save $65,000 per year for retirement, with the first deposit to be made one year from today. She will invest in a mutual fund that's expected to provide a return of 7.5% per year. She plans to retire 30 years from today, when she turns 65, and she expects to live for 25 years after retirement, to age 90. Under these assumptions, how much can she spend each year after...
Your sister turned 30 today, and she is planning to save $7,000 per year for retirement,...
Your sister turned 30 today, and she is planning to save $7,000 per year for retirement, with the first deposit to be made one year from today. She will invest in a mutual fund that's expected to provide a return of 8% per year. She plans to retire 35 years from today, when she turns 65, and she expects to live for 25 years after retirement, to age 90. Under these assumptions, how much can she spend each year after...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT