An investor may deposit $2,000 into both a traditional IRA and a Roth IRA. After 30 years, given a 9% annual return and a 20% tax rate, what will be the value of each account? Which will be higher and by how much? Why is this?

In wisely planning for your retirement, you invest $35,000 per year for 20 years into a 401k tax-deferred account. Assume you make a real return of 10% per year when the inflation rate averages 3.4% per year. How many future dollars will you have in the account immediately after your last deposit? You will have $ 3788484. future dollars in your account immediately after your last deposit.

Suppose that you expect to receive an inheritance of £10,000 in one year. You will want to put this money then on a one-year deposit. Suppose further that, as of today, you are entering into a forward rate agreement to receive 4% on £10,000 for a one-year starting in one year. What is your gain/loss when the realised one-year forward rate in one year is higher than 4%? Provide a relevant example and explain your reasoning.

Using the "Human Life Value" method, how much life insurance should you purchase if you have 45 years until retirement, an annual income of $65,100 received at the start of each years, and a time value of money of 9%? (Assume 80% income replacement, ignore taxes and inflation.)

You would like to have enough money saved to receive a $90,000 per year perpetuity after retirement. The annual interest rate is 8 percent. Required: How much would you need to have saved in your retirement fund to achieve this goal? a) Assume that the perpetuity payments start on the day of your retirement. b) Assume that the perpetuity payments start one year from the date of your retirement.

What's the future value of a 12%, 5-year ordinary annuity that pays $700 each year? If this was an annuity due, what would its future value be? Round your answers to the nearest cent.

You would like to have 950,000 when you retire in 30 years.  How much should you invest each quarter if you can earn a rate of 4.8% compounded quarterly?  How much should you deposit each quarter?  How much total money will you put into the account? How much total interest will you earn?

To supplement your​ retirement, you estimate that you need to accumulate ​$290,000 exactly 41 years from today. You plan to make​ equal, end-of-year deposits into an account paying   8% annual interest.   a.  How large must the annual deposits be to create the ​$290,000 fund by the end of 41 ​years? b.  If you can afford to deposit only ​$800 per year into the​ account, how much will you have accumulated in 41 ​years?

You have just received a windfall from an investment you made in a friend's business. He will be paying you $17,752 at the end of this year, $35,504 at the end of the following year, and $53,256 at the end of the year after that (three years from today). The interest rate is 11.7% per year. a. What is the present value of b. What is the future value of your windfall in three years (on the date of the last payment)? your windfall? a. What is the present value of your windfall? The present value of your windfall is $ (Round to the nearest dollar.) b. What is the future value of your windfall in three years (on the date of the last payment)? The future value of your windfall in three years is $ (Round to the nearest dollar.)

An investor pays £300 now in order to get £150 in 4 years' time and £200 in 8 years' time. What is the annual effective rate of interest earned on this investment?