None A couple thinking about retirement decide to put aside $3,600 each year in a savings plan thatearns 8% interest. In 5 years they will receive a gift of $16,000 that also can be invested.a. How much money will they have accumulated 30 years from now? (Do not roundintermediate calculations. Round your answer to 2 decimal places.)Accumulated savingsesb. If their goal is to retire with $860,000 of savings, how much extra do they need to saveevery year? (Do not round intermediate calculations. Round your answer to 2 decimalplaces.)Additional annual savings needed

The objective of the question is to calculate the total savings of a couple after 30 years, given…

Answered: A couple thinking about retirement…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 23P

See similar textbooks

Similar questions

Refer to the present value table information on the previous page. What amount should Brett have in his bank account today, before withdrawal, if he needs 2,000 each year for 4 years, with the first withdrawal to be made today and each subsequent withdrawal at 1-year intervals? (Brett is to have exactly a zero balance in his bank account after the fourth withdrawal.) a. 2,000 + (2,000 0.926) + (2,000 0. 857) + (2,000 0.794) b. 2,0000.7354 c. (2,000 0.926) + (2,000 0.857) + (2,000 0.794) + (2,000 0.735) d. 2,0000.9264
A couple thinking about retirement decide to put aside $2,400 each year in a savings plan that earns 7% interest. In 10 years they will receive a gift of $26,000 that also can be invested. a. How much money will they have accumulated 30 years from now? (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. If their goal is to retire with $740,000 of savings, how much extra do they need to save every year?
A couple will retire in 50 years; they plan to spend about $24,000 a year (in current dollars) in retirement, which should last about 25 years. They believe that they can earn a real interest rate of 7% on retirement savings. a. If they make annual payments into a savings plan, how much will they need to save each year? Assume the first payment comes in 1 year. Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Annual savings 687.99 b. How would the answer to part (a) change if the couple also realize that in 20 years they will need to spend $54,000 on their child's college education? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Annual savings 1,699.14
A couple thinking about retirement decide to put aside $12,500 each year in a savings plan that earns 7.50% interest. In 9 years they will receive a gift of $89,500 that also can be invested. a. How much money will they have accumulated 27 years from now? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Accumulated savings $ b. If their goal is to retire with $1,648,383 of savings, how much extra do they need to save every year? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
A couple thinking about retirement decide to put aside $3,900 each year in a savings plan that earns 8% interest. In 5 years they will receive a gift of $19,000 that also can be invested. a. How much money will they have accumulated 30 years from now? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. b. If their goal is to retire with $890,000 of savings, how much extra do they need to save every year? Note: Do not round intermediate calculations. Round your answer to 2 decimal places need both parts,,,,attempt if you will solve both parts....thanks
A couple will retire in 40 years; they plan to spend about $33,000 a year in retirement, which should last about 20 years. They believe that they can earn 8% interest on retirement savings. a. If they make annual payments into a savings plan, how much will they need to save each year? Assume the first payment comes in 1 year. (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. How would the answer to part (a) change if the couple also realize that in 15 years they will need to spend $63,000 on their child’s college education?
A couple will retire in 50 years; they plan to spend about $32,000 a year (in current dollars) in retirement, which should last about 25 years. They believe that they can earn a real interest rate of 9% on retirement savings. If they make annual payments into a savings plan, how much will they need to save each year? Assume the first payment comes in 1 year. Note: Do not round intermediate calculations. Round your answer to 2 decimal places. How would the answer to part (a) change if the couple also realize that in 20 years they will need to spend $62,000 on their child's college education? Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
A couple will retire in 50 years; they plan to spend about $38,000 a year in retirement, which should last about 25 years. They believe that they can earn 9% interest on retirement savings. If they make annual payments into a savings plan, how much will they need to save each year? Assume the first payment comes in 1 year. (Do not round intermediate calculations. Round your answer to 2 decimal places.) How would the answer to part (a) change if the couple also realize that in 20 years they will need to spend $68,000 on their child’s college education? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
A couple will retire in 50 years; they plan to spend about £30,000 a year in retirement, which should last about 25 years. They believe that they can earn 8% interest on retirement savings. (Do not include the pound sign (£). Do not round intermediate calculations. Round your final answer to 2 decimal places (e.g. 36.16). a) If they make annual payments into a savings plan, how much will they need to save each year? Assume the first payment comes in 1 year. b ) How would the answer to part (a) change if the couple also realize that in 20 years, they will need to spend £30,000 on their child's college education?
Suppose a woman has decided to retire as soon as she has saved $800,000. Her plan is to put $950 each month into an ordinary annuity that pays an annual interest rate of 2.4%. In how many years will she be able to retire? She will be able to retire in approximately years. (Round to the nearest year as needed.) Enter your answer in the answer box and then click Check Answer. All parts showing Clear All Check Answer To see what to study next, go to your Study Plan. 99+ a 近

A friend is celebrating her birthday and wants to start saving for her anticipated retirement. She has the following years to retirement and retirement spending goals. Years until retirement: 30 Amount to withdraw each year: $120,000 Years to withdraw in retirement: 25 Interest rate: 7.5% Because your friend is planning ahead, the first withdrawal will not take place until one year after she retires. She wants to make equal annual deposits into her account for her retirement fund. Required: Now assume that the inflation rate is 3%. Consequently, when your friend retires she will want to withdraw $120,000 each year in today’s dollars. What amount is she planning to receive in year 31 (the end of her first year of retirement)? How much does she need to have in retirement at the end of year 30 in order to receive her retirement payments assuming that these retirement payments continue to increase at 3% per year throughout her retirement?…
Solve the following problems on a sheet of paper. What Have I Learned So Far? Solve the following problems on a sheet of paper. Your parents wanted to establish a travel fund that will provide them an annual traver 1. allowance of P250 000 for 10 years when they retire, How much should they invest in a trust fund that earns 4% interest compounded monthly if they are to retire in 5 years? 2. How much should a mother invest now for a long-term investment that offers 10% interest compounded monthly if she desires to provide her son a 5-year college fund of P120 000 annually, 6 years from now?

SEE MORE QUESTIONS

Recommended textbooks for you

EBK CONTEMPORARY FINANCIAL MANAGEMENT

Finance

ISBN:

9781337514835

Author:

MOYER

Publisher:

CENGAGE LEARNING - CONSIGNMENT

Cornerstones of Financial Accounting

Accounting

ISBN:

9781337690881

Author:

Jay Rich, Jeff Jones

Publisher:

Cengage Learning

Cornerstones of Cost Management (Cornerstones Ser…

Accounting

ISBN:

9781305970663

Author:

Don R. Hansen, Maryanne M. Mowen

Publisher:

Cengage Learning

EBK CONTEMPORARY FINANCIAL MANAGEMENT

Finance

ISBN:

9781337514835

Author:

MOYER

Publisher:

CENGAGE LEARNING - CONSIGNMENT

Cornerstones of Financial Accounting

Accounting

ISBN:

9781337690881

Author:

Jay Rich, Jeff Jones

Publisher:

Cengage Learning

Cornerstones of Cost Management (Cornerstones Ser…

Accounting

ISBN:

9781305970663

Author:

Don R. Hansen, Maryanne M. Mowen

Publisher:

Cengage Learning

Intermediate Accounting: Reporting And Analysis

Accounting

ISBN:

9781337788281

Author:

James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:

Cengage Learning

Pfin (with Mindtap, 1 Term Printed Access Card) (…

Finance

ISBN:

9780357033609

Author:

Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:

Cengage Learning

Financial Accounting Intro Concepts Meth/Uses

Finance

ISBN:

9781285595047

Author:

Weil

Publisher:

Cengage

SEE MORE TEXTBOOKS