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 $________.

Expert Solution

The total interest earned = Accumulated Value - PV

=$2489329 - $214016

= $2275313

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 $ 2489329  in the account. Using the TVM Solver, the value for PV=214016  and the value for PMT= _1200. At the end of the 40 years, the total interest that Alexander will have earned would be $__2275313______.

orchestra answered 1 year ago

1.) If the account earns an interest rate of 24% compounded monthly, find the effective rate...

1.) If the account earns an interest rate of 24% compounded monthly, find the effective rate of interest: A. Compounded daily 360 days B. Compounded daily 365 days C. Compounded weekly D. Compounded monthly E. Compounded quarterly F. Compounded semi-annually G. Compounded annually 2.) What is the effective annual interest rate for a nominal interest rate of 24% compounded continuously?

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...

You will deposit $9000 into an account with an annual interest rate of 7% compounded monthly,...

You will deposit $9000 into an account with an annual interest rate of 7% compounded monthly, leave the account untouched for 18 years, and then withdraw equal amounts at the end of each month for the following 9 years, ending with a balance of $9000. What will your monthly withdrawals be?

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

1. If your bank quoted a 6% interest rate on your account, which is compounded monthly,...

1. If your bank quoted a 6% interest rate on your account, which is compounded monthly, which of the following implications is correct? a. The semi-annual interest on your account is 3% b. The monthly interest on your account is 0.5% c. Your effective annual interest rate on this account is 6% d. Your effective annual interest rate on this account is below 6% 2. The interest amount of an interest-only loan is ______. a. repaid in full at the...

The annual interest rate on a credit card is 18% with interest compounded monthly. If a...

The annual interest rate on a credit card is 18% with interest compounded monthly. If a payment of $100 is made at the end of each month, how many months will it take to pay off an unpaid balance of $2,583.56 (assuming no additional purchases are made)?

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.

For an interest rate of 8% per year compounded monthly, what is the nominal interest rate...

For an interest rate of 8% per year compounded monthly, what is the nominal interest rate for one year?

(a) What interest rate compounded monthly is equivalent to (has the same APY as) 15% compounded...

(a) What interest rate compounded monthly is equivalent to (has the same APY as) 15% compounded semi-annually? (b) What interest rate compounded continuously is equivalent to (has the same APY as) 15% compounded semi-annually?

a) How much must be placed each month into a retirement account earning 11% compounded monthly...

a) How much must be placed each month into a retirement account earning 11% compounded monthly if the value of the account is to reach $ 1,000,000 in 30 years? Answer = $ b) If the account continues to earn 11% after retirement, how much per year will the account earn? Answer = $

Question