You invest $1,190,000 into a retirement account and earn 9.00% per year, compounded monthly. At retirement...

You invest $1,190,000 into a retirement account and earn 9.00% per year, compounded monthly. At retirement your account balance is $5,430,000. Over how many years did you make this investment?

PLEASE ANSWER WITH EXCEL

Solutions

Expert Solution

We can use the Excel function=NPER() for this purpose.

The steps

The PV=$1,190,000

The interest rate=9%

Since it's compounded month divided it by 12

The Future value=$5,430,000

The formula used to compute the number of periods=NPER(B3/12,0,B2,-B5)

Divide the result by 12(since 12 months a year) and we get 16.92968 years

jeff jeffy answered 1 year ago

Next > < Previous

Related Solutions

A) You invest RM10,000 today into retirement account. You expect to earn 11% compounded monthly, on...

A) You invest RM10,000 today into retirement account. You expect to earn 11% compounded monthly, on your money for the next 25 years. After that, you want to be more conservative, so only expect to earn 7%, compounded semiannually. How much money will you have in your account when you retire 40 years from now, assuming that this is the only deposit you make into account? B) Assume that you just won the Open Golf Championship. Your prize can be...

You invest $10,000 today into a retirement account. You expect to earn 11 percent, compounded monthly,...

You invest $10,000 today into a retirement account. You expect to earn 11 percent, compounded monthly, on your money for the next 25 years. After that, you want to be more conservative, so only expect to earn 7 percent, compounded semi-annually. How much money will you have in your account when you retire 40 years from now, assuming that this is the only deposit you make into the account? A. $443,908 B. $397,062 C. $441,387 D. $483,928 E. $433,590

Assume you can earn 9% per year on your investments. If you invest $100,000 for retirement...

Assume you can earn 9% per year on your investments. If you invest $100,000 for retirement at age 30, how much will you have 35 years later for retirement? (Answer: $2,041,397) If you wait until age 40 to invest the $100,000, how much will you have 25 years later for retirement? (Answer: $862,308) Why is the difference so large?

Alexander is setting up a retirement account. If the interest rate is 6.15% compounded monthly, then...

Alexander is setting up a retirement account. If the interest rate is 6.15% compounded monthly, then after making 40 years of monthly payment of $1,200 into the account at the end of each month, then he will have $_________ in the account. Using the TVM Solver, the value for PV= _______ and the value for PMT= _______. At the end of the 40 years, the total interest that Alexander will have earned would be $________.

a. You have saved up for retirement in an annuity account. This account earns a return of 7% on annual basis but compounded monthly.

a. You have saved up for retirement in an annuity account. This account earns a return of 7% on annual basis but compounded monthly. You are due to retire in 6 years from now. You will receive monthly payments of $2,400 at the end of each month after retiring, for 15 years. How much have you saved up in this account today? b. Two banks are competing to give a loan to you for $150,000 with 30-year term to...

A client has $300,000 in an account that earns 8% per year, compounded monthly. The client's...

A client has $300,000 in an account that earns 8% per year, compounded monthly. The client's 35th birthday was yesterday and she will retire when the account value is $1 million. At what age can she retire if she puts no more money in the account? At what age can she retire if she puts $250 per month into the account every month, beginning one month from today?

If you invest $1,000 today into a deposit account earning 5.75% interest compounded monthly, how much...

If you invest $1,000 today into a deposit account earning 5.75% interest compounded monthly, how much would your investment be worth in 10 years?

If you invest $5,000 today into a deposit account earning 6.25% interest compounded monthly, how much...

If you invest $5,000 today into a deposit account earning 6.25% interest compounded monthly, how much would your investment be worth in 5 years?

Lydia saved $1,345,000 for retirement. The money is deposited in an account earning 3.2% compounded monthly....

Lydia saved $1,345,000 for retirement. The money is deposited in an account earning 3.2% compounded monthly. She is going to withdraw $5500 per month for living expenses. Create a table showing how much interest she earns each month and her monthly balance for the first 5 months of her retirement. Do this by hand with just the functions of a scientific calculator.

Initially, $2000 is deposited into a retirement account which pays 5% interest per year, compounded continuously....

Initially, $2000 is deposited into a retirement account which pays 5% interest per year, compounded continuously. New money is added to the account at the rate of $1000 per year. How much will be in the account after 10 years? Please use the method of ordinary differential equations to setup and complete the problem. Also please show all steps and work clearly so I can follow your logic and learn to solve similar ones myself. I will rate your answer...

Subjects