Question

In: Finance

Today is your 25th birthday, and you want to save $2.4 Million by your birthday at...

Today is your 25th birthday, and you want to save $2.4 Million by your birthday at age 70. If you expect to earn 7% APR compounded monthly in your retirement account, what constant payment at the end of each month must you deposit into the account through your 70th birthday in order to reach your retirement savings goal on your 70th birthday? (Answer to the nearest penny.)

Solutions

Expert Solution

jeff jeffy answered 1 year ago
Next > < Previous

Related Solutions

Today is your 25th birthday, and you have calculated that you need to accumulate $2.1 Million...
Today is your 25th birthday, and you have calculated that you need to accumulate $2.1 Million by your 70th birthday in order to retire in a manner in which you are accustomed to living. If your retirement account earns 7.1% per year simple interest, how much must you deposit on each of your birthdays (from 26 to 70) in order to reach your target retirement savings on your 70th birthday? (Answer to the nearest dollar.)
It is your 25th birthday (end of 25 years) and you decide that you want to...
It is your 25th birthday (end of 25 years) and you decide that you want to retire on your 65th birthday (end of 65 years - 40 years later). Your salary is $55,000 per year and you expect your salary to increase by 3% each year for the next 40 years. When you retire, you want your retirement fund to provide an annual payment equal to 80% of your salary at age 65 and to increase by 2% a year...
You and your cousin Kristin were born on the same day. Today is your 25th birthday....
You and your cousin Kristin were born on the same day. Today is your 25th birthday. Five years ago (when you turned 20) your aunt started depositing $2,500 into Kristin's account. She did this every year and she just made a sixth deposit. Your aunt will make forty more $2,500 payments until a 46th and final payment is made on Kristin's sixty fifth birthday. Your aunt has had a change of heart and now wants to make an equivalent provision...
Today is your 25th birthday. Your goal is to retire when you turn 70 years old...
Today is your 25th birthday. Your goal is to retire when you turn 70 years old and have sufficient monthly income until your expected demise on your 99th birthday. In order to realize your goal, you are planning to make deposits into a target-date retirement fund that is expected to generate 7.8% annual return, compounded monthly. You want to be able to make monthly withdrawals from this fund starting one month after your retirement until your expected demise. These monthly...
Could you show your work in Excel Please. Today is your 25th birthday. You have decided...
Could you show your work in Excel Please. Today is your 25th birthday. You have decided that it is necessary to plan your own retirement since you are not confident that government benefits will be available when you retire. You will make annual payments into an account earning 5% APY starting on your next birthday (26th) a year from now. Your last payment will occur on your 70th birthday. You have decided that you need to plan for payments of...
You just celebrated your 25th birthday today. You plan to invest $2000 annually, with the first...
You just celebrated your 25th birthday today. You plan to invest $2000 annually, with the first $2000 invested on your 26th birthday and the last invested on your 60th birthday. What is the value of this investment on your 61st birthday if all invested funds earn 6 percent annually?
Your friend is celebrating her 25th birthday today and wants to start saving for her anticipated...
Your friend is celebrating her 25th birthday today and wants to start saving for her anticipated retirement at age 65. She wants to be able to withdraw $200,000 from her saving account on each birthday for 15 years following her retirement; the first withdrawal will be on her 66th birthday. Your friend intends to invest her money in a retirement account, which earns 8 percent return per year. She wants to make an equal annual deposit on each birthday into...
Your friend is celebrating her 25th birthday today and wants to start saving for her anticipated...
Your friend is celebrating her 25th birthday today and wants to start saving for her anticipated early retirement at age 55. She wants to be able to withdraw $10,000 from her savings account on each birthday for 10 years following her retirement, the first withdrawal will be in her 56th birthday. She wants to make equal, annual payments on each birthday in a new savings account she will establish for her retirement fund. The account pays 8 per cent interest...
Your friend Ellen is celebrating her 25th birthday (i.e., she is 25 today) and wants to...
Your friend Ellen is celebrating her 25th birthday (i.e., she is 25 today) and wants to start saving for her anticipated retirement at age 55. She wants to be able to withdraw $10,000 from her savings account on each birthday for 10 years following her retirement (the first withdrawal will be on her 56th birthday). Ellen intends to invest her money in the local saving bank, which offers 8% (EAR) interest per year. Suppose Ellen wants to make 24 deposits...
You want to save an amount today that will pay for your futureannual food bills...
You want to save an amount today that will pay for your future annual food bills that will start next year, and go for 20 years. The current annual cost of your food bill is $6,155, but the cost is rising at 3% per year. How much would you have to invest today, to fully pay for your future annual food bills if your investments earn 6.81% APR nominal (annual compounding).
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT