a. How much money will be in the account immediately after the last deposit? b. How much total money will you put into the fund? c. How much total money will your employer put into the fund? d. How much will the total investment earnings be? e. If you want the account to last for 30 years (30 withdrawals), starting 1 year after the last deposit, what amount will you be able to withdraw each year? f. If you want the account to last forever, what amount will you be able to withdraw each year?
a. How much money will be in the account immediately after the last deposit? b. How much total money will you put into the fund? c. How much total money will your employer put into the fund? d. How much will the total investment earnings be? e. If you want the account to last for 30 years (30 withdrawals), starting 1 year after the last deposit, what amount will you be able to withdraw each year? f. If you want the account to last forever, what amount will you be able to withdraw each year?
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 8EA: You put $250 in the bank for S years at 12%. A. If interest is added at the end of the year, how...
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You plan to open a retirement account. Your employer will match 50% of your deposits up to a limit on the match of $2,500 per year. You believe the fund will earn 12% over the next 30 years, and you will make 30 deposits of $5,000, plus 50% employer matching, totaling $7,500 per year.
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