You plan to retire in 35 years and can invest to earn 6.85 percent. You estimate that you will need $82,000 at the end of each year for an estimated 30 years after retirement, and you expect to earn 4.5 percent during those retirement years. How much do you need to set aside at the end of each year to accumulate the money necessary for your retirement? (Assume year-end cash flows.) I will need this much at retirement _____________and will need to set aside ___________per year (at the end of each year.

You plan to retire in 35 years and can invest to earn 6.85 percent. You estimate that you will need $82,000 at the end of each year for an estimated 30 years after retirement, and you expect to earn 4.5 percent during those retirement years. How much do you need to set aside at the end of each year to accumulate the money necessary for your retirement? (Assume year-end cash flows.) I will need this much at retirement ___and will need to set aside _per year (at the end of each year.

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter13: Capital, Interest, Entrepreneurship, And Corporate Finance

Section: Chapter Questions

Problem 13PAE

See similar textbooks

Similar questions

A man invests his savings in two accounts, one paying 6 percent and the other paying 10 percent simple interest per year. He puts twice as much in the lower-yielding account because it is less risky. His annual interest is 6534 dollars. How much did he invest at each rate? Your answer is total in the account paying 6 percent interest is total in the account paying 10 percent interest is
3. You are looking to retire in 35 years and your company has a 401K plan that has a 5.2% annual return. You deposit $400 a month from your paycheck into the account. Calculate the amount of your retirement when you retire.
You can invest in an account that pays simple interest or an account that pays compound interest. In either case, you plan to invest $2,900 today and both accounts have an annual interest rate of 8 percent. How much more interest will you receive in the 11th year in the account that pays compound interest?
Suppose that Tyler wants to buy a house and is thinking of using $20,000 that sits in a retirement account for a down payment on this new home. Using the $20,000 as a down payment will reduce Tyler's income when he retires in 30 years. If Tyler can earn an 8%8% annual return on his money if he leaves it in the retirement account, how much will his consumption in retirement be reduced if he uses this money for a down payment now?
Today you borrow $10,000 to pay for your expected college costs over the next four years, including a master’s degree. Two years from now, you determine that you need an additional $4,000 so you borrow this additional amount. Starting four years from the original loan (two years from the second loan), you begin to repay your combined debt by making annual payments of $2,880. You will make these payments for 10 years. Draw a cash flow diagram of this situation from your perspective.
Q3: You may have already won $2 millions. You will receive $100,000 per year for 20 years. Suppose you are considering the following two options: First Choice: You save your winning for the first 7 years and then spend every cent of the winning in the remaining 13 years Second Choice: You do the reverse, spending for 7 years and then saving for 13 years If you can save wining at 7% interest, how much would you have at the end of 20 years and what interest rate on your saving will make the two options equivalent ?
If you deposit $4,800 at the end of each of the next 15 years into an account paying 11.3 percent interest, how much money will you have in the account in 15 years? How much will you have if you make deposits for 30 years?
3. You just inherited P1,000,000. While you plan to squander some of it away, how much should you deposit in an account earning 5% interest per year if you would like to have P1,000,000 in the account in 10 years?
I need to solve the question in handwriting and in clarity please Q3: You may have already won $2 millions. You will receive $100,000 per year for 20 years. Suppose you are considering the following two options: First Choice: You save your winning for the first 7 years and then spend every cent of the winning in the remaining 13 years Second Choice: You do the reverse, spending for 7 years and then saving for 13 years If you can save wining at 7% interest, how much would you have at the end of 20 years and what interest rate on your saving will make the two options equivalent?
You are thinking of investing $3600 this year. You have received advice from family members. • Aunt Anne recommends investing in the stock market with a 9.45% average rate of return. • Uncle Rick recommends investing in a 5.60% certificate of deposit (CD). • Grandpa recommends investing in a 0.53% savings account. How much money will you have at the end of 10 years if you pick Aunt Anne's advice? money after 10 years: S How much money will you have at the end of 20 years if you pick Uncle Rick's advice? money after 20 years: $ How much money will you have at the end of 40 years if you pick Grandpa's advice? money after 40 years: $
4) How much money will be in a bank account at the end of 15 years if $100 is deposited today and the interest rate is 8 percent compounded annually?
You plan to deposit $300 each year into an IRA earning 4% interest annually. How much will you have in your account in 20 years? Your Answer: Answer