Anthony Accy, age 22, wants to begin saving for retirement and wants to have $1,800,000 in savings at age 65. He expects to earn an 8.2% return compounded annually betwen now and retirement at age 65. He plans to make end of the year equal annual deposits for the next 30 years and then will stop making deposits until retirement at age 65. How large will Anthony's annual deposit have to be over the next 30 years to meet his retirement savings goal at age 65? A. $5,498 B. $5,155 C. $4,764 D. $5,081

Anthony Accy, age 22, wants to begin saving for retirement and wants to have $1,800,000 in savings at age 65. He expects to earn an 8.2% return compounded annually betwen now and retirement at age 65. He plans to make end of the year equal annual deposits for the next 30 years and then will stop making deposits until retirement at age 65. How large will Anthony's annual deposit have to be over the next 30 years to meet his retirement savings goal at age 65? A. $5,498 B. $5,155 C. $4,764 D. $5,081

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 44P

See similar textbooks

Similar questions

Starling wants to retire with $2, 110,000 in his retirement account exactly 41 years from today. He will make annual deposits at the end of each year to fund his retirement account. If he can earn 9.73 percent per year, how much must he deposit each year? ** PLS EXPLAIN HOW TO SOLVE USING A FINANCIAL CALCULATOR
C. Fred is planning on retiring this year. How much must his retirement account have in it this year in order to make a $40,000 payment each year for the next 30 years to meet his needs assuming that the appropriate interest rate is 8%?*
You want to be able to withdraw $50,000 from your account each year for 20 years after you retire. You expect to retire in 25 years. If your account earns 8% interest, how much will you need to deposit each year until retirement to achieve your retirement goals?
I want to be able to withdraw $40,000 from my account each year for 30 years after I retire. I expect to retire in 15 years. If my account earns 4% interest, how much will I need to deposit each year until retirement to achieve my goals?
John wants to have the financial ability to withdraw $80,000 per year forever beginning 30 years from now. If his retirement account earns 8% per year interest and dividends, what is the required balance in (a) year 29, and (b) year 0?
You want to be able to withdraw $35,000 from your account each year for 20 years after you retire. If you expect to retire in 30 years and your account earns 7.9% interest while saving for retirement and 7.7% interest while retired:Round your answers to the nearest cent as needed.a) How much will you need to have when you retire?$b) How much will you need to deposit each month until retirement to achieve your retirement goals?$c) How much did you deposit into you retirement account?$d) How much did you receive in payments during retirement?$e) How much of the money you received was interest?
Kaelin believes that in 30 years he will need $80,000 to buy a retirement cottage. Assuming he gets an interest rate of 9% compound annually, how much will he have to invest today to reach his retirement goal? retirement goal - $
Jim Smith believes that in 30 years he will need $80,000 to buy a retirement cottage. Assuming he gets an interest rate of 9% compounded annually, how much will he have to invest today, to reach his retirement goal?
You and your wife are making plans for retirement. You plan on living 25 years after you retire and would like to have $75,000 annually on which to live. Your first withdrawal will be made one year after you retire and you anticipate that your retirement account will earn 15% annually. What amount do you need in your retirement account the day you retire? Do not round intermediate calculations. Round your answer to the nearest cent.$ 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.$