Suppose you are 30 years old and would like to reure do this? Assume a constant APR of 5% and that the compounding and payment periods are the same. To draw $100,000 per year, there must be $ in your savings account when you retire, (Do not round until the final answer. Then round to the nearest integer as needed.) You can reach your goal by making monthly deposits of $ (Do not round until the final answer. Then round to two decimal places as needed.)

Suppose you are 30 years old and would like to reure do this? Assume a constant APR of 5% and that the compounding and payment periods are the same. To draw $100,000 per year, there must be $ in your savings account when you retire, (Do not round until the final answer. Then round to the nearest integer as needed.) You can reach your goal by making monthly deposits of $ (Do not round until the final answer. Then round to two decimal places as needed.)

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 3PA: Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate...

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Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $4,200 over the next 6 years when the interest rate is 8%, how much do you need to deposit in the account? B. If you place $8,700 in a savings account, how much will you have at the end of 12 years with an interest rate of 8%? C. You invest $2,000 per year, at the end of the year, for 20 years at 10% interest. How much will you have at the end of 20 years? D. You win the lottery and can either receive $500,000 as a lump sum or $60,000 per year for 20 years. Assuming you can earn 3% interest, which do you recommend and why?
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Suppose you are 30 years old and would like to retire at age 60. Furthermore, you would like to have a retirement fund which you can draw an income of $1250,00 per year- forever! How much would you need to deposit each month to do this? Assume a constant APR of 6% and that compounding and payment periods are the same. To draw $125000 per year there must be $____ in your saving account when you retire.
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