Question
In: Advanced Math
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
to save each month?
d) Were you surprised by
the answers in parts a - c? Discuss the effect of time on the
growth of money.
Solutions
Thanks?
Colby Messinger answered 1 year agoRelated Solutions
You plan to graduate at age 23 and start saving for retirement at age 24. You...
You plan to graduate at age 23 and start saving for retirement
at age 24. You save as follows:
Age 24-35
$6,000 per year
Age 36-50
$5,000 per year
Age 51-60
$2,000 per year
Age 61-65
$8,000 per year
How much money will you be able to withdrawal from ages 66-90 as
regular amounts assuming all money earns 6.5% interest? Please use
excel and show equations
You are 25 years old and decide to start saving for your retirement. You plan to...
You are 25 years old and decide to start saving for your
retirement. You plan to save $3000 at the end of each year (so the
first deposit will be one year from now), and will make the last
deposit when you retire at age 65. Suppose you earn 10% per year on
your retirement savings.
How much will you have saved for
retirement?
How much will you have saved if you wait until age 35
to start saving (again,...
You are 25 years old and decide to start saving for your retirement. You plan to...
You are 25 years old and decide to start saving for your
retirement. You plan to save $5,000
at the end of each year (so the first deposit will be one year
from now), and will make the last deposit when you retire at age
65.
Suppose you earn 8% per year on your retirement savings.
a. How much will you have saved for
retirement? The amount that you will have accumulated for
retirement is _____
b. How much will...
You want to start saving money for your retirement. You want toretire in 35 years...
You want to start saving money for your retirement. You want to
retire in 35 years and think you will need to accumulate $1,500,000
to maintain your desired lifestyle after you retire. If you are
confident you will be generating 6% annual rate of return, how much
do you have to save each month?Group of answer choices$1,121.73$712.74$1,052.85$8,552.85
You begin saving for retirement at age 25, and you plan to retire at age 60....
You begin saving for retirement at age 25, and you plan to
retire at age 60. You want to deposit a certain amount each month
into an account that pays an APR of 3% compounded monthly. Make a
table that shows the amount you must deposit each month in terms of
the nest egg you desire to have when you retire. (Round your
answers to the nearest cent.)
Nest egg size
Needed deposit
$100,000
$
$200,000
$
$300,000
$
$400,000...
Assume you have a saving account that pays 4% APR. If you have a beginning balance...
Assume you have a saving account that pays 4% APR. If you have a
beginning balance of$6000, How much do you need to save on a
monthly basis in a saving account (add to your saving account) to
have a down payment of $20000 for a house in 5 years
Suppose you start saving for retirement by depositing $4,000 EVERY YEAR into your retirement account. If...
Suppose you start saving for retirement by depositing $4,000
EVERY YEAR into your retirement account. If your
annual return is 8%, how much will you have in 45 years? How much
would you have if all deposits were made on the
FIRST of the year (as opposed to the last day of
the year)? (please solve by hand and not excel)
Suppose your retirement account pays 9% APR compounded monthly. a. What size nest egg do we...
Suppose your retirement account pays 9% APR compounded
monthly.
a. What size nest egg do we need in order to retire with a
25 year annuity that yields $500 per month?
b What size nest egg do we need in order to retire with
a 25 year annuity that yields $700 per month?
You estimate you can save $150 per month for a down
payment on a car. You hope to purchase the car in 24 months. You
invest this...
Your friend tells you that she wants to start saving for retirement by investing in the...
Your friend tells you that she wants to start saving for retirement
by investing in the stock market. Given that you have taken this
finance class, she asks you for advice about what stocks she should
buy. What would you tell her?
You plan to make a deposit today to an account that pays 6% compounded annually that...
You plan to make a deposit today to an account that pays 6%
compounded annually that will found the following withdrawals with
nothing left in the account after the withdrawals, starting at the
end of year 4 you plan to make 5 annual withdrawals (withdraw in
year 4,5,6,7,8) that will increase by 2% over the previous year's
withdrawals. The amount for withdrawals in year 4 will be $2000,
what amount do you need to deposit today?
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