1. At the end of each month for 45 years, a 25-year-old deposits $100 into a retirement account at 7.2% interest, compounded monthly. Use the increasing annuity formula to determine how much money will be in the account when this investor reaches age 70. (Round your answer to the nearest dollar.)
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- Samuel Ames owes 20,000 to a friend. He wants to know how much he would have to pay if he paid the debt in 3 annual installments at the end of each year, which would include interest at 14%. Draw a time line for the problem. Indicate what table to use. Look up the table value and place it in a brief formula. Solve.You put $250 in the bank for S years at 12%. A. If interest is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the fifth year. B. Use the future value of $1 table in Appendix B and verity that your answer is correct.Say that you plan to retire one quarter after making quarterly contributions to a retirement account for 10 years. You plan to make quarterly contributions of $1007 to an investment account that will earn 10.0% interest annually. If your first contribution occurs today, then what is the account balance when you retire? (Round to the nearest dollar)
- An executive prepares for retirement by depositing $2500 into an annuity each year for 10 years. The annuity earns 5.7% per year. Find the future value of the annuity at the end of 10 years. (Round your final answer to two decimal places.)Many persons prepare for retirement by making monthly contributions to a savings program. Suppose that $2,500 is set aside each year and invested in a savings account that pays 8% interest per year, compounded continuously. a. Determine the accumulated savings in this account at the end of 29 years. b. In Part (a), suppose that an annuity will be withdrawn from savings that have been accumulated at the EOY 29. The annuity will extend from the EOY 30 to the EOY 36. What is the value of this annuity if the interest rate and compounding frequency in Part (a) do not change? Click the icon to view the interest and annuity table for continuous compounding when i=8% per year. a. The accumulated savings amount at the end of 29 years will be $275384. (Round to the nearest dollar.) b. The value of the annuity will be $41655. (Round to the nearest dollar.)How much must you deposit each year into your retirement account starting now and continuing through year 10 if you want to be able to withdraw $90,000 per year forever, beginning 29 years from now? Assume the account earns interest at 14% per year. The amount to be deposited is determined to be $________ .
- To prepare for retirement, you are going to deposit money into a pension plan account every month for the next 25 years. The pension plan has a 6.96% annual rate that compounds monthly. How much money will be in the account after 25 years if for the next 25 years you deposit $465.86 into the pension plan every month? First find the interest rate per period to four decimal places: i = Next find the total number of deposits: n = Finally, find the total amount of money in the account after 25 years: FV =As part of your retirement plan, you have decided to deposit $6,000 at the beginning of each year into an account paying 3% interest compounded annually. (Round your answers to the nearest cent.) (a) How much (in $) would the account be worth after 10 years? $70846.77 (b) How much (in $) would the account be worth after 20 years? $166058.91 (c) When you retire in 30 years, what will be the total worth (in $) of the account? $294016.07 (d) If you found a bank that paid 6% interest compounded annually rather than 3%, how much (in $) would you have in the account after 30 years? $28460.95 (e) Use the future value of an annuity due formula to calculate how much (in $) you would have in the account after 30 years if the bank in part (d) switched from annual compounding to monthly compounding and you deposited $500 at the beginning of each month instead of $6,000 at the beginning of each year.A personal account earmarked as a retirement supplement contains $292,100. Suppose $250,000 is used to establish an annuity that earns 5%, compounded quarterly, and pays $5500 at the end of each quarter. How long will it be until the account balance is $0? (Round your answer UP to the nearest quarter.)
- 1.I plan to deposit $376 into my retirement every year for the next 25 years. The first deposit will be made today (that is, at t = 0) and the last deposit will be made at the end of year 24 (that is, at t = 24). I plan to make no other deposits. Assuming that I will earn 12.13% p.a. on my retirement funds, how much money will I have accumulated 36 years from today (that is, at t = 36)? Round your answer to 2 decimal places; record your answer without commas and without a dollar sign. 2. Assume that you deposit $ 1,038 each year for the next 15 years into an account that pays 11 percent per annum. The first deposit will occur one year from today (that is, at t = 1) and the last deposit will occur 15 years from today (that is, at t = 15). How much money will be in the account 15 years from today? Round your answer to 2 decimal places; record your answer without commas and without a dollar sign.Many persons prepare for retirement by making monthly contributions to a savings program. Suppose that $ 2,500 is set aside each year and invested in a savings account that pays 8% interest per year, compounded continuously. a. Determine the accumulated savings in this account at the end of 25 years. b. In Part (a), suppose that an annuity will be withdrawn from savings that have been accumulated at the EOY 25 The annuity will extend from the EOY 26 to the EOY 34 What is the value of this annuity if the interest rate and compounding frequency in Part (a) do not change? Click the icon to view the interest annuity table for continuous compounding when i=8% per yearA personal account earmarked as a retirement supplement contains $292,100. Suppose $250,000 is used to establish an annuity that earns 5%, compounded quarterly, and pays $6500 at the end of each quarter. How long will it be until the account balance is $0? (Round your answer UP to the nearest quarter.) quarters