Question
In: Finance
You are planning for your retirement and have decided the following: you will retire in 40...
You are planning for your retirement and have decided the following: you will retire in 40 years and will make monthly deposits into your retirement account of $300 for the next 15 years and then monthly deposits of $750 for the remaining 25 years until retirement. This account earns a 7% rate of return, compounded monthly. In addition, you will inherit $50,000 7 years from today. The inheritance will be deposited into an account that will earn 10% per year until year 20 and then 15% per year after that (compounded annually). How much will you have when you retire?
$2,122,992.89
$3,977,062.58
$3,527,728.75
$702,642.46
Solutions
jeff jeffy answered 8 months agoRelated Solutions
You are planning for your retirement and have decided the following: you will retire in 40...
You are planning for your retirement and have decided the
following: you will retire in 40 years and will make monthly
deposits into your retirement account of $300 for the next 15 years
and then monthly deposits of $750 for the remaining 25 years until
retirement. This account earns a 7% rate of return, compounded
monthly. In addition, you will inherit $50,000 7 years from today.
The inheritance will be deposited into an account that will earn
10% per year...
You are planning for your retirement and have decided the following: you will retire in 38...
You are planning for your retirement and have decided the
following: you will retire in 38 years and would like to have
$7,000 per month as retirement income for 30 years of retirement.
You have access to an account that earns a 9% rate of return.
1) How much will you need to have when you retire to be able to
withdraw the desired $7,000 per month during your years of
retirement?
2) If you plan to save by making...
You are planning for your retirement and have decided the following: you will retire in 35...
You are planning for your retirement and have decided the
following: you will retire in 35 years and will make monthly
deposits into your retirement account of $400 for the next 15 years
and then monthly deposits of $800 for the remaining 20 years until
retirement. This account earns a 7% rate of return, compounded
monthly. In addition, you will inherit $50,000 7 years from today.
The inheritance will be deposited into an account that will earn
10% per year...
You are planning for a very early retirement. You would like to retire at age 40...
You are planning for a very early retirement. You would like to
retire at age 40 and have enough money saved to be able to draw
$ 210 comma 000$210,000
per year for the next
4040
years (based on family history, you think you'll live to
age
8080).
You plan to save for retirement by making
2020
equal annual installments (from age
2020
to age 40) into a fairly risky investment fund that you expect
will earn
1010%
per year....
You are planning to retire when you turn 65. You currently have $25,000 in your retirement...
You are planning to retire when you turn 65.
You currently have $25,000 in your retirement account.
Based on actuary tables, you expect to live to be 100 years
old.
During each year of retirement you want to be able to withdraw
$50,000 from your retirement account (at the beginning of the
year).
The interest rate is 3%.
You plan to make deposits into your retirement account on your
birthday, each year until you retire.
How much will you need...
You are planning to retire in 40 years. You currently have $ 300,000 in a bond...
You are planning to retire in 40 years. You currently have $
300,000 in a bond mutual fund and $100,000 in a stock mutual fund.
You plan to invest $10,000 per year in the stock mutual fund for
the next 40 years (i.e., from t=1 to t=40). The bond fund is
expected to earn 4% per year, compounded annually, and the stock
account is expected to earn 9% per year, compounded annually,
indefinitely. When you retire in 40 years, you...
Suppose that you are planning for retirement. You are 26 and plan to retire when you...
Suppose that you are planning for retirement. You are 26 and
plan to retire when you are 70, 44 years from now. Your investment
goal (based on the 3-legged retirement model) is to gain $5 million
at the time you retire. Your opportunity cost of capital (discount
rate) is 8 percent. What would be your maximum withdrawal from your
personal investment account if you plan to exhaust your personal
savings at age 90?
The project average rate of inflation (for...
Suppose that you are planning for retirement. You are 26 and plan to retire when you...
Suppose that you are planning for retirement. You are 26 and
plan to retire when you are 70, 44 years from now. Your investment
goal (based on the 3-legged retirement model) is to gain $5 million
at the time you retire. Your opportunity cost of capital (discount
rate) is 8 percent. What would be your maximum withdrawal from your
personal investment account if you plan to exhaust your personal
savings at age 90?
The project average rate of inflation (for...
1. On the day you retire, you will have $389,900 in your retirement savings. You expect...
1. On the day you retire, you will have $389,900 in your
retirement savings. You expect to earn 4.5 percent, compounded
monthly, and live 24 more years. How much can you withdraw from
your savings each month during your retirement?
A. $754.16
B. $751.35
C. $2,208.01
D. $2,072.00
E. $2,216.28
2.
You are retired, have $264,500 in your savings, withdraw $2,000
each month, and earn 4.5 percent, compounded
monthly. How long will it be until you run out of
money?...
You are planning your retirement and you come to the conclusion that you need to have...
You are planning your retirement and you come to the conclusion
that you need to have saved $3000000million in 30 years. You can
invest into an retirement account that guarantees you a 13% annual
return. How much do you have to put into your account at the end of
each year to reach your retirement goal?
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