You want to have $5 million when you retire in 30 years. You feel that you can save $750 per month until you retire. What APR do you have to earn in order to achieve your goal? Enter your answer as a percentage rounded off to two decimal places. Do not enter % in the answer box.
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- You have just made your first $5,000 contribution to your retirement account. Assume you earn a return of 10 percent per year and make no additional contributions. What will your account be worth when you retire in 45 years? What if you wait 35 years before contributing? (show answer using function feature in excel)You have just made your first $4,300 contribution to your retirement account. Assume you earn a return of 12 percent per year and make no additional contributions. a. What will your account be worth when you retire in 28 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What if you wait 10 years before contributing? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)You have decided that you want to be a millionaire when you retire in 45 years. a. If you can earn an annual return of 11.36 percent, how much do you have to invest today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What if you can earn an annual return of 5.68 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
- You have just made your first $1,500 contribution to your retirement account. Assume you earn a return of9 percent and make no additional contributions. a. What will your account be worth when you retire in 45 years? Future value for starting now b. What will your account be worth if you wait 8 years before contributing? Future value if waiting 8 yearsYour parents will retire in 29 years. They currently have $240,000 saved, and they think they will need $1,100,000 at retirement. What annual interest rate must they earn to reach their goal, assuming they don't save any additional funds? Round your answer to two decimal places. _____%You just retired with $179,500 in your retirement account. How much will you be able to withdraw at the beginning of each month if you want your payments to last for 23 years? Assume that your account will earn j12-6.00% and that you will use up all of your funds. Express your answer to 2 decimal places but don't include the $ sign. Your Answer:
- Suppose you want to retire in (choose 1: 10 - 20 - 30) years with enough saved to earn (choose 1: $30K - $50K - $70K) per year for 15 - 25 - 35 years. Presume that you have not saved anything [OR have saved $ 100K] towards retirement yet. Your plan is to make equal contributions over the next (choose 1: 10 - 20 - 30) years to a retirement account that will earn (choose 1: 5 - 8 - 10) percent per year. List your variables and report back how much you have to have saved in FV terms, as well as how much you'll need to save in each of the next x yearsSolve each of the following questions using both pricing formulas and Excel. 3. You plan to retire in 35 years. At the end of each year, you plan on saving $15,000, and your bank pays you 2% annual interest. How much will you have saved by the time you retire?Imagine that your goal is to retire 34 years from today with $1,000,000 in savings. Assuming that you currently (i.e., today) have $5,000 in savings, what rate of return must you earn on that savings to hit your goal?
- You have just made your first $4,000 contribution to your retirement account. Assuming you earn an 9 percent rate of return and make no additional contributions. (A) what will your account be worth when you retire in 25 years? (B) what will your account be worth if you wait 10 years before contributing?You want to be a millionaire when you retire in 40 years. a. How much do you have to save each month if you can earn an APR of 10.5 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. How much do you have to save each month if you wait 15 years before you begin your deposits? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. How much do you have to save each month if you wait 25 years before you begin your deposits? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a. Savings per month starting today b. Savings per month starting in 15 years c. Savings per month starting in 25 yearsSuppose you retired at age 65 and your retirement benefits is $50,000 which remains constant for the next 25 years. During the first year, it is enough to cover your cost of living expenses. But because of inflation, your cost of living is expected to increase at 5% every year. To compensate the increase, you will withdraw funds from another savings account which earns 7% annually. Find the equivalent present worth of the cost of living. Round off answer (no decimals). * Projected Retirement Pension $50,000 $50,000 Years 12 3 4 S 6 |21 22 23 24 |25 $50,000 $50,000 (1.05) Projected Cost of Living $161,255