QUESTION 9Create a spreadsheet for the scenario described below and submit it as your answer to this question. You will then use thespreadsheet you created to answer questions #10-12.Right now, Raelynn has $28,575 in her IRA (retirement account).She plans to make deposits to this account of $2,000 per year for the next 10 years, and then $3,500 per year for the fifteenyears after that, and beyond that no further payments,Create a spreadsheet to find the future value of her IRA 40 years from now, assuming she earns 8.25%.Attach FileBrowse Local FilesBrowse Content Collection

Time value of money (TVM) refers to the method or technique which is used to measure the amount of…

Answered: Create a spreadsheet to find the future…

Create a spreadsheet to find the future value of her IRA 40 years from now, assuming she earns 8.25%. Attach File Browse Local Files Tits, Browse Content Collection

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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show working using both a financial calculator and spreadsheet. after, show answer rounded off to the nearest dollar. Sam is in discussion with you about saving for his retirement. You are to advise him on how much he should deposit annually to meet his retirement needs. Assume that he will deposit a fixed annual amount for the next 20 years into a retirement savings account, starting one year from now. Sam has a son who will be attending college and plans to make 5 withdrawals (starting one year after making his final deposit into the retirement account) of $35,000 each to pay for his annual tuition for the following 5 years. Commercial Banks will be paying 6 percent on such retirement accounts for the next 25 years. Kindly advise Sam on how much he should place in the account annually to cover his retirement needs.
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Please respond to the following scenarios as part of the Week 1: Calculating the Time Value of Money assignment. Scenario 1 Assume you will retire at 67. You decide to open a retirement account that earns 8% interest. You will put $125 per month into this account starting now (at your current age). How much money will you have in this account when you retire? Scenario 2 Assume you will retire at 67. You decide to open a retirement account that earns 8% interest. You put $125 per month into this account starting now (at your current age), for a 10-year period. After that, you stop contributing to this account, and the account continues to earn 8% interest. How much money will you have at age 67? Scenario 3 Assume you do not start saving now, but wait for 10 years. You will retire at 67, and earn 8% on your monthly deposits of $150. How much will you have at 67? Scenario 4 Assume you will retire at 67. You decide to open a retirement account that earns 8% interest. You will put $325 per…
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