A couple wants to retire in 35 years and can save $400 every month. They plan to deposit the money at the end of each month into an account paying 3.55% compounded monthly. How much will they have at the end of the 35 years?
Q: You want to be able to withdraw $40,000 from your account each year for 15 years after you retire.…
A: The Present Value of this withdrawal is computed as follows: Withdrawal = $40,000 Time period = 15…
Q: A small business owner contributes $4,000 at the end of each quarter to a retirement account that…
A: FV is the future worth of cash flows that have occurred in the past or present.
Q: At retirement, Maria's saving account has $620,000 in it and is earning 1.2% compounded monthly.…
A: The present value is the value of the sum received at time 0 or the current period. It is the value…
Q: John and Rosamond want to retire in 15 years and can save $110 every three months. They plan to…
A: Individuals save for retirement using various instruments in order to have a sufficient amount…
Q: John and Rosamond want to retire in 15 years and can save $150 every three months. They plan to…
A: A= $150 r=6.72% n=15 m=4
Q: When you retire, you plan to draw $50,000 per year from your retirement accounts, which will be…
A: Annuity is the no. of payments which are equal in size and made in equal interval of time. Person…
Q: John and Rosamond want to retire in 8 years and can save $230 every 3 months. They plan to deposit…
A: A concept that implies the future worth of the money is lower than its current value due to several…
Q: John and Diane need to have $397,000.00 available for retirement. How much will they have to invest…
A: Future value is the expected value of any current asset as per a growth rate.
Q: Gwen decides to make regular deposits every month into an account that earns 8% annual interest,…
A: The question is based on concept of present value and future value of money . formula as: FV=pmt…
Q: Siri plans to retire when her simple annuity savings account has enough money to receive 10000.00…
A: We need to use excel FV function to calculate future value of payment and NPER function for…
Q: how much should the couple withdraw each month? If the couple decides to withdraw $6,000 a month…
A: An Annuity is a series of payments of fixed amounts and at fixed intervals. These can be of two…
Q: Suppose a young couple deposits $700 at the end of each quarter in an account that earns 7.2%,…
A: Here, Deposit for the first three years is $700 per quarter Deposit after three years for the next…
Q: Bob and Pat want to purchase a vacation home in ten years and need $45,000 for a down payment. How…
A: Time value tells that money received today has more value than that of receiving exact value later…
Q: When Jasmine retires she has $950,000 in a retirement account that earns 6% annual interest,…
A: Using PMT function in excel
Q: Jeremy and Bill each have $57,043 to invest in a retirement account whose annual rate is 2.9% with…
A: As the compounding is monthly the effective rate = [1+(apr/12)]^12 - 1 = [1+(2.9%/12)]^12 - 1 =…
Q: A couple will retire in 50 years; they plan to spend about $30,000 a year in retirement, which…
A: Time value of money is the concept widely followed by the management and many companies to determine…
Q: A couple will retire in 50 years; they plan to spend about $35,000 a year in retirement, which…
A: given information reirement period = 25 years spend in a retirement period for a year $35,000…
Q: How much will they have in this account at the end of 1 year?
A: Information Provided: Term = 1 year Interest rate = 24% compounded monthly Monthly deposit = $1000…
Q: A) Suppose a young couple deposits $700 at the end of each quarter in an account that earns 7.6%,…
A: Future Value: The value of any asset at some future date which is computed using an assumed rate of…
Q: Craig and sally just got married .they want to have $750.000 in a retirement account in 40 years .…
A: We need to use future value of annuity formula for calculation of periodic deposit to achive the…
Q: amie is saving ₱10,000 at the end of each month. How soon can he retire if he wants to have a…
A: Monthly saving = P 10,000 Future value (FV) = P 250,000 Annual interest rate = 4.36% Monthly…
Q: A couple just got married and they both are 25 and plan to retire at 65, in 40 years. They want 200k…
A: You have to calculate first retirement amount and than find out present value of that.
Q: Grandparents plan to open an account on their grandchild's birthday and contribute each month until…
A: Future value required (FV) = $ 200,000 Interest rate = 5% Monthly interest rate (r) = 5%/12 =…
Q: A couple just got married and they are both 25 years of age. They each plan to retire in 40 years…
A: Amount Required after retirement =200000 per year After retirement years (n1) =20 Interest Rate(r)…
Q: Max wants to save $500,000 to give to the local clown college. Max decides he can afford to deposit…
A: Given:Max want to save $500000He can deposit $10000 each month Which pay 4% monthly interestTo…
Q: Suppose a young couple deposits $900 at the end of each quarter in an account that earns 6.2%,…
A: Given that p= $ 900 deposited each quarter r = 6.2% compounded quarterly after 9 years p= $ 200…
Q: Sam's family has decided that they will start depositing $100 at the end of every month into a…
A: Monthly Deposit = 100 End of month deposits Time Period = 3 years or 36 months Interest Rate = 4.6%…
Q: How much should the parents place at the end of each year into a savings account that earns an…
A: This problem expects the present value of 45,000. interest = 4.8% period = 16 years We also need…
Q: Kelly just started retirement with $500000 in his retirement account. The retirement account has an…
A: The question is based on the concept of Financial Management. As per the Bartleby guidelines we are…
Q: You want to be able to withdraw $1, 500 from your account each month for 20 years after you retire…
A: The given problem can be solved using PV and PMT function in excel. PV function computes current…
Q: In 6 years Harry and Sally would like to have $24000 for a down payment on a house. How much should…
A: In this question we need to compute the each month deposit to have $24000 for down payment in 6…
Q: John and Rosamond want to retire in 10 years and can save $130 every three months. They plan to…
A: The future value is the amount that will be received at the end of a certain period. In simple…
Q: A small business owner contributes $2,000 at the end of each quarter to a retirement account that…
A: Order annuity refers to the insurance contracts that promises to pay the regular income of a…
Q: You want to be able to withdraw $35,000 from your account each year for 25 years after you retire.…
A: Given Information:- in the question, you want to withdrawal $35000 each year from you bank account…
Q: how much do they need to invest at the end of each 6-month period for the next 18 years to begin…
A: The present value of an annuity: A=R[(1-(1+i)-n)i] A=35,000[(1-(1+0.03)-16)0.03] A = 439,639
Q: John and Rosamond want to retire in 8 years and can save $230 every three months. They plan to…
A: In this problem we have to convert interest into quarterly interest and period into quarterly period…
Q: John and Rosamond want to retire in 6 years and can save $190 every three months. They plan to…
A: The time-value-of-money concept is used to determine the actual worth of money you have now and what…
Q: Every year, you receive your entire annual salary at the end of the year. This year, your…
A: Inflation rate With nominal rate and real rate, the inflation rate is calculated as show below.…
Q: When you retire at 65, you wish to be able to have $3,000 each month for 25 years. How much would…
A: Firstly calculate the present value of annuity with $3000 as PMT and 25 years, use this present…
Q: David wants to retire in 40 years. If he puts away $300 per quarter, at the end of each quarter,…
A: Time value of money states that the value of the amount of money today is more than the value of the…
Q: A couple will retire in 40 years; they plan to spend about $27,000 a year in retirement, which…
A: values provided according to question, A=$27000R=7%N=20 YEARS TOTAL AMOUNT NEEDED FOR RETIREMENT…
Q: Amy Johnson wants to retire on $75,000 per year for her life expectancy of 20 years after she…
A: The cash flows discussed here are annuities where an equal amount is paid each period.
Q: A couple will retire in 50 years; they plan to spend about $32,000 a year in retirement, which…
A: The problem is based on the concept of time value of money which says that money received today is…
Q: You are planning to invest $2,000 in an account earning 10% per year for retirement. If you put the…
A: Return refers to the money made or lost on a investment after a period of time.
Q: A young couple wants to have a college fund that will pay $35,000 at the end of each half-year for 8…
A: Here, Required Amount in every six months for 8 years is $35,000 Interest Rate is 6% Time Period for…
Q: A young couple wants to have a college fund that will pay $40,000 at the end of each half-year for 8…
A: Time value of money refers that, a sum of money today has more value than the same amount received…
Q: You want to be able to withdraw $35,000 from your account each year for 20 years after you retire.…
A: The concept of the time value of money states that the current worth of money is more than its value…
Q: A couple will retire in 40 years; they paln to spend about $23,000 a retirement, which should last…
A: The stream or series of payments that are to be made at specific time intervals is known as annuity.…
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
- A couple is saving for retirement with three different accounts. The table below shows the current balances in their accounts, along with their yearly contribution, and the yearly return on each account. The couple will retire in 22.00 years and pool the money into a savings account that pays 4.00% APR. They plan on living for 30.00 more years and making their yearly withdrawals at the beginning of the year. What will be their yearly withdrawal?A couple is saving for retirement with three different accounts. The table below shows the current balances in their accounts, along with their yearly contribution, and the yearly return on each account. The couple will retire in 24.00 years and pool the money into a savings account that pays 4.00% APR. They plan on living for 30.00 more years and making their yearly withdrawals at the beginning of the year. What will be their yearly withdrawal? Yearly Contribution $1,000.00 Account Fidelity Mutual Fund Vanguard Mutual Fund Employer 401k Balance $21,452.00 $183,845.00 $307,061.00 Submit Answer format: Currency: Round to: 2 decimal places. $10,000.00 $15,000.00 APR 7.00% 7.00% 6.00%A couple will retire in 40 years; they plan to spend about $27,000 a year in retirement, which should last about 20 years. They believe that they can earn 7% 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. b. How would the answer to part (a) change if the couple also realize that in 15 years they will need to spend $57,000 on their child’s college education?
- You and your wife are making plans for retirement. You plan on living 25 years after you retire and would like to have $90,000 annually on which to live. Your first withdrawal will be made one year after you retire and you anticipate that your retirement account will earn 12% annually. What amount do you need in your retirement account the day you retire? Do not round intermediate calculations. Round your answer to the nearest cent. $ Assume that your first withdrawal will be made the day you retire. Under this assumption, what amount do you now need in your retirement account the day you retire? Do not round intermediate calculations. Round your answer to the nearest cent. $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 1,699.14A couple will retire in 50 years; they plan to spend about $26,000 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. How would the answer to part (a) change if the couple also realize that in 20 years they will need to spend $56,000 on their child’s college education?
- A couple plans to retire in 25 years. At that time, they would like to have enough money in an account so that they can receive a $3,600 every month end for 20 years. The account earns APR 5.8% and will continue to do so until there is a zero balance in the account. To achieve this goal, how much money does the couple need to have in this account by the time they retire? (calculate to cents.)A couple will retire in 50 years; they plan to spend about $34,000 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 $ Annual savings 761.74 b. How would the answer to part (a) change if the couple also realize that in 20 years they will need to spend $64,000 on their child's college education? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. 1,370.95A 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 $32,000 a year in retirement, which should last about 25 years. They believe that they can earn 9% 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. b) 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? Show workings and calculation with scientific calculaterA 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 percent 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. How would the answer to part (a) change if the couple also realizes that in 20 years, they will need to spend $60,000 on their child’s college education?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 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 ?