Your father now has $1,000,000 invested in an account that pays 9.00%. He expects inflation to average 3%, and he wants to make annual constant dollar (real) end-of-year withdrawals over each of the next 20 years and end up with a zero balance after the 20th year. How large will his initial withdrawal (and thus constant dollar [real] withdrawals) be?
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Your father now has $1,000,000 invested in an account that pays 9.00%. He expects inflation to average 3%, and he wants to make annual constant dollar (real) end-of-year withdrawals over each of the next 20 years and end up with a zero balance after the 20th year. How large will his initial withdrawal (and thus constant dollar [real] withdrawals) be?
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- Suppose you need to accumulate GHȼ100,000 in 10 years. You plan to make a deposit in a bank now, at Time 0, and then make 9 more deposits at the beginning of each of the following 9 years, for a total of 10 deposits. The bank pays 6% interest, you expect inflation to be 2% per year, and you plan to increase your annual deposits at the inflation rate. How much must you deposit initially?Suppose that you earn $45,600 per year. What is your monthly salary? $ Assume that you deposit 10% of your monthly salary into an investment account with an APR of 4.8% every month for 30 years. We will assume for simplicity that your salary never changes, so you are depositing the same amount every month for 30 years. What will the balance of your investment account be after 30 years? Round your answer to the nearest cent. The balance of the account is $ How much of the investment account balance is interest? The amount of interest in the account is $You currently have $7,800 (Present Value) in an account that has an interest rate of 7.5% per year compounded continuously. You want to withdraw all your money when it reaches $19,500 (Future Value). In how many years will you be able to withdraw all your money? The number of years is
- Suppose you have deposited $10,000 in your high-yield saving account today. The savings account pays an annual interest rate of 4%, compounded semi-annually. Two years from today you will withdraw R dollars. You will continue to make additional withdraws of R dollars every 6 months, until you have a zero balance after your last withdrawal 5 years from now. Find R. Please add in steps and formulas!In wisely planning for your retirement, you invest $12,000 per year for 20 years into a 401(k) account. How much can you withdraw each year for 10 years, starting one year after your last deposit, if you obtain a real return of 10% per year? Assume the inflation rate averages 2.8% per year.A person wants to withdraw PLN 5,000 a quarter for 36 years. This person also 4) wishes to index this amount by about 0.075% per quarter to compensate for inflation effects. How much should he have today to achieve this goal if the average nominal interest rate for instruments he wants to use for saving generates a return of 5,5% per year?
- Suppose you invest $120 a month for 8 years into an account earning 10% compounded monthly. After 8 years, you leave the money, without making additional deposits, in the account for another 30 years. How much will you have in the end? $ Suppose instead you didn't invest anything for the first 8 years, then deposited $120 a month for 30 years into an account earning 10% compounded monthly. How much will you have in the end? sYou want to be able to withdraw $45,000 each year for 30 years. Your account earns 10% interest. a) How much do you need in your account at the beginning? $ b) How much total money will you pull out of the account? $ c) How much of that money is interest?Suppose you invest $160 a month for 5 years into an account earning 9% compounded monthly. After 5 years, you leave the money, without making additional deposits, in the account for another 21 years. How much will you have in the end?$CorrectSuppose instead you didn't invest anything for the first 5 years, then deposited $160 a month for 21 years into an account earning 9% compounded monthly. How much will you have in the end?
- You estimate that by the time you retire in 35 years, you will have accumulated savings of $3.5 million. a. If the interest rate is 10.0% and you live 15 years after retirement, what annual level of expenditure will those savings support? (Do not round intermediate calculations. Enter your answer in whole dollars rounded to 2 decimal places.) b. Unfortunately, inflation will eat into the value of your retirement income. Assume a 6% inflation rate and work out a spending program for your $3.5 million in retirement savings that will allow you to increase your expenditure in line with inflation. What will be your expenditure amount in real terms for each year of your retirement? (Do not round intermediate calculations. Enter your answer in whole dollars rounded to 2 decimal places.) Can you Please Answer Part B?You need to accumulate $10,000. To do so, you plan to make deposits of $1,500 per year with the first payment being made a year from today - into a bank account that pays 7% annual interest. Your last deposit will be less than $1,500 if less is needed to round out to $10,000. How many years will it take you to reach your $10,000 goal? Do not round intermediate calculations. Round your answer up to the nearest whole number. 6 year(s) How large will the last deposit be? Do not round intermediate calculations. Round your answer to the nearest cent. $Suppose you plan to invest $20000 in an account paying 8% interest per annum. How much will you have in the account in 15years? Suppose that you invest $20000 in an account paying 8% interest per annum. You plan to withdraw $2000 at the end of each year for 15 years. How much money will be left in the account after 15years?