Amy Monroe wants to create a fund today that will enable her to withdraw $32,630 per...

Amy Monroe wants to create a fund today that will enable her to withdraw $32,630 per year for 7 years, with the first withdrawal to take place 5 years from today. If the fund earns 10% interest, how much must Amy invest today?

Expert Solution

ekkarill92 answered 1 year ago

1.A woman wants to withdraw $80,000 per year for the next 30 years. Her retirement funds...

1.A woman wants to withdraw $80,000 per year for the next 30 years. Her retirement funds will be invested in assets that are expected to earn an annual rate of return of 6%. Assume her first withdraw comes one year after her date of retirement. How much money does she need in her retirement fund on her retirement date. 1b. It is 50 years prior to her retirement date. Starting one year from today, she plans to begin funding her...

Lionel wants to set up a fund for his son's education such that he could withdraw...

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Alan Quincy wants to withdraw $33,300 each year for 11 years from a fund that earns...

Alan Quincy wants to withdraw $33,300 each year for 11 years from a fund that earns 6% interest. Click here to view factor tables How much must he invest today if the first withdrawal is at year-end? How much must he invest today if the first withdrawal takes place immediately? (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 458,581.) First withdrawal at year-end $enter a dollar amount rounded to 0 decimal...

Wants to be able to withdraw $80,000 per year at the end of each year from...

Wants to be able to withdraw $80,000 per year at the end of each year from his retirement account for 30 years after he retires. Assuming a 7% annual compound interest rate, what is the minimum amount Mr. Smith must-have in this account when he retires? Please indicate what you entered into your calculator to solve these problems.

Derek wants to withdraw $11,575.00 from his account 3.00 yearsfrom today and $13,908.00 from his...

Derek wants to withdraw $11,575.00 from his account 3.00 years from today and $13,908.00 from his account 12.00 years from today. He currently has $2,838.00 in the account. How much must he deposit each year for the next 12.0 years? Assume a 6.69% interest rate. His account must equal zero by year 12.0 but may be negative prior to that. Currency: Round to: 2 decimal places.

1. April wants to create a scholarship fund by saving for several years before the fund...

1. April wants to create a scholarship fund by saving for several years before the fund starts making annual scholarship payments forever. She plans to save 10,800 dollars per year for 5 years. Her first savings contribution is expected later today. How much can the fund be expected to provide each year for scholarships if the fund is expected to earn 4.67 percent per year, make equal scholarship payments forever, and make its first scholarship payment in 6 years?

Jan wants to plan for her daughter’s education. Her daughter, Rachel was born today and will...

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Today, you retire with $1,200,000 and you want to ensure that you can withdraw $1500 per...

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Derek wants to withdraw $11,575.00 from his account 3.00 years from today and $13,908.00 from his...