At the time they retire, a couple has $200,000 in an account that pays 8.4% compounded monthly. If the couple decides to withdraw $3,000 a month as long as it takes, and then make a final withdraw which may be a smaller amount than $3,000 to reduce the account balance to zero. What is the amount of the last withdraw?
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- Refer to the present value table information on the previous page. What amount should Brett have in his bank account today, before withdrawal, if he needs 2,000 each year for 4 years, with the first withdrawal to be made today and each subsequent withdrawal at 1-year intervals? (Brett is to have exactly a zero balance in his bank account after the fourth withdrawal.) a. 2,000 + (2,000 0.926) + (2,000 0. 857) + (2,000 0.794) b. 2,0000.7354 c. (2,000 0.926) + (2,000 0.857) + (2,000 0.794) + (2,000 0.735) d. 2,0000.9264You have just made your first $4,300 contribution to your retirement account. Assume you earn a return of 12 percent per year and make no additional contributions. a. What will your account be worth when you retire in 28 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What if you wait 10 years before contributing? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)You want to retire at age 65. You decide to make a deposit to yourself at the end of each year into an account paying 3%, compounded annually. Assuming you are now 25 and can spare $1,400 per year, how much will you have when you retire at age 65? (Round your answer to the nearest cent.)_____$
- 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.)You want to be able to withdraw $40,000 from your account each year for 25 years after you retire. If you expect to retire in 15 years and your account earns 6.6% interest while saving for retirement and 6.2% interest while retired:Round your answers to the nearest cent as needed.a) How much will you need to have when you retire?$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?$e) How much of the money you received was interest?$Suppose your parents have just retired and have $1 million in a retirement account. For how many years can they withdraw $5,000 at the beginning of each month for expenses, assuming that the account will continue to earn a 5 percent annual return until it is exhausted?
- Don't provide handwritten solution. A couple will retire in 40 years; they plan to spend about $31,000 a year (in current dollars) in retirement, which should last about 20 years. They believe that they can earn a real interest rate of 7% 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 15 years they will need to spend $61,000 on their child’s college education? USE EXCELA 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? Give your answer to the nearest dollar.A couple will retire in 40 years; they plan to spend about $33,000 a year in retirement, which should last about 20 years. They believe that they can earn 8% 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. (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. How would the answer to part (a) change if the couple also realize that in 15 years they will need to spend $63,000 on their child’s college education?
- You have just made your first $4,500 contribution to your individual retirement account. Assume you earn an annual return of 10.85 percent and make no additional contributions. a. What will your account be worth when you retire in 43 years? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. b. What if you wait 10 years before contributing? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. a. Account value if you start now b. Account value if you wait 10 yearsStan only has 14 years until he retires. He is going to deposit money into an account with 3.4% interest, compounded monthly. Question Question For each question round your final answer to the nearest cent. Assume the interest rate stays the same while the account is open. Also, assume Stan does not have any other money in this account. Question 3 Question 4 Question 5 How much will be in the account if he deposits the same $50.00 each month? Question 6 Question 7 Question 8 Question 9 How much will be in the account if he deposits $100.00 each month? Question 10 Question 11 Question 12 How much will be in the account if he deposits $150.00 each month? Summary How does doubling or tripling his payment impact his ending account balance? O It earns much more than double or triple the ending account balance. O It earns somewhat less than double or triple the ending account balance. O It doubles or triples the ending account balance, respectively. P Type here to search DIL Home 19 PrtScn…Jeni has decided that she needs to start saving for her retirement. She can afford $100 a month deducted automatically from her paycheck. She deposits it into an account that earns 4.5% interest compounded monthly. How much will she have in her account when she retires 42 years later? A. $ 14,922.70 B.$ 50,400.00 C. $132,213.00 D. $149,226.96