Alex and Tony are twins. After graduation and being finally able to get a good job, they plan for retirement as follows: 1. Starting at age 24, Alex deposits P10,000.00 at the end of each year for 36 years. 2. Starting at age 42, Tony deposits P20,000.00 at the end of each year for 18 years. Who will have the greater amount at retirement if both annuities earn 12% per year compounded annually?

Alex and Tony are twins. After graduation and being finally able to get a good job, they plan for retirement as follows: 1. Starting at age 24, Alex deposits P10,000.00 at the end of each year for 36 years. 2. Starting at age 42, Tony deposits P20,000.00 at the end of each year for 18 years. Who will have the greater amount at retirement if both annuities earn 12% per year compounded annually?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Similar questions

After retiring, Jeanette wants to be able to withdraw $9,500.00 every quarter from her account for 34 years. Her account earns 6% interest compounded quarterly.How much does Jeanette need in her account when she retires? Jeanette needs $_____ in her account when she retires.
Maryann is planning a wedding anniversary gift of a trip to Hawaii for her husband at the end of 3 years. She will have enough to pay for the trip if she invests $2,500 per year until that anniversary and plans to make her first $2,500 investment on their first anniversary. Assume her investment earns a 4 percent interest rate, how much will she have saved for their trip if the interest is compounded in each of the following ways? a. Annually b. Quarterly Monthly C.
jesse recieved $5,000 from his grandmother when he turned 18. if he invests it at 5.5%(12), how much will he have in the account at the end of four years?
Willie deposits a fixed monthly amount into an annuity account for his child's college fund. He wishes to accumulate a future value of $75,000 in 15 years. Assuming an APR of 3.5%, how much will Wilie deposit monthly to reach his goal? How much of the 75,000 will Willie ultimately deposit and how much is interest earned?
Leon and Heidi decided to invest $2,750 annually for oply the first nine years of their marriage. The first payment was made at age 20. Irude annual interest rate is 8%. how much accumulated interest and principal will they have at age 65? Scor The accumulated interest and principal will equal S (Round to the nearest dollar)
A couple plans to save for their child's college education. What principle must be deposited by the parents when their child is born in order to have 38? $1000 when? The child. Reaches? The age of eighteen assume the money earns nine percent interest compounded quarterly
Craig and sally just got married .they want to have $750.000 in a retirement account in 40 years . How much should they deposit at the end of every 6 months sat 2% compounded semiannually in order to reach this goal?
Daniel owns a homestay that yields annual rent of RM30,000. There is a rent payment due today and one each at the end of the next two years. If Daniel deposit all three into his account, which earns 3 percent, how much money will he received at the end of year 2?
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.)
Twins Natalie and Kaitlyn are both 27. They both live in Warren, OH. Beginning at age 27, Natalie invests $2,000 per year for ten years and then never sets aside another penny. Kaitlyn waits ten years and then invests $2,000 per year for the next 30 years. Assuming they both earn 7 percent, how much will each twin have at age 67?
J'Mal wishes to retire at age 65. At the age of 21, he begins depositing $35 per month into an account earning 8.5% AAPR. How much money will he have when he turns 65?
Sam wishes to have $500,000 in his retirement account when he retires, in 30 years . If he can earn 6% compounded monthly . how much should he deposit to reach his goal.

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