Clair is an Artificial Intelligence engineer who hopes to become a millionaire by her60th birthday, which is 360 months from today. Starting next month, she plans todeposit 15.00% of her monthly salary into an account that will pay interest of 5.00%p.a. How much does she need to make per month to achieve her goal?1) 6,007.752) 8,010.333) 8,563.314) None of the answers in this list is within $10 of the correct answer.5) 1,201.566) 6,705.23

Step 1: State the given: Future Value, F = $1,000,000number of period, m = 12 (monthly)number of…

Answered: Clair is an Artificial Intelligence…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 10P

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Holly Krech is planning for her retirement, so she is setting up a payout annuity with her bank. She wishes to receive a payout of $1,900 per month for twenty years. (a) How much money must she deposit if her money earns 7.8% interest compounded monthly? (Round your answer to the nearest cent.)___________ $ (b) Find the total amount that Holly will receive from her payout annuity. Thank you!
Chad is an engineer who hopes to have $1,000,000 in his retirement account by his 60 ^ (th) birthday which is 421 months from today. Starting next month , he plans to deposit 20% of his monthly salary into an account that will pay interest of 5.00% pa How much does he need to make per month ( ie., what salary per month ) to achieve his goal ? Note that he makes 421 total deposits . 1) $4,378.95 2 ) $2,919.30 3 ) None of the answers in this list is within $ 0.20 of the correct answer . 4 ) $ 4,170.32 5 ) $ 3,203.40
Margaret Moore expects to need $44,000 for a down payment on a house in six years. How much would she have to invest today in an account paying 8.25 percent in order to have $44,000 in six years? (Round answer to 2 decimal places, e.g. 52.75.)
12) What annual rate of return would Jia need to earn if she deposits $20,000 per year into an account beginning one year from today in order to have a total of $1,000,000 in 30 years?
Laura has decided that she wants to build enough retirement wealth that, if invested at 6.50% per year (compounded monthly), will provide her with $3,500 of monthly income for 25 years. To date,she has saved nothing, but she still has 30 years until she retires. How much money does Laura need to contribute per month to reach her goal? $468.60 $536.90 $415.65 $573.10 $390.86
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
Lily has an account that pays 3.48% simple interest per year and wants to accumulate $4,000 in interest from it over the next 12 years. How much money should Lily invest in this account to meet her goal? (Use I = Prt) a. $2,000.00 b. $1.670,40 $9.578.54 d. $6,030.27
6. Suppose that Avery gets a credit card in November, 2023. She spends $4,300 every month on the card, just as she had done with cash and always pays her statement balance in full. She closes the card in October 2025 and makes her final payment in November 2025. If she is able to earn 8.6% interest (compounded annually) in the stock market, how much extra money can she save by using this credit card instead of cash? For simplicity, assume that she faces no capital gains taxes and invests in stocks that offer no dividends.
Linda Williams expects to need $ 42,000 for a down payment on a house in six years. How much would she have to invest today in an account paying 6.25 percent in order to have $ 42,000 in six years? (Round answer to 2 decimal places, e.g. 52.75.) $ Present value
Your daughter is born today and you want her to be a millionaire by the time she is 35 years old. You open an investment account that promises to pay 12% per year. How much money must you deposit each year, starting on her 1st birthday and ending on her 35th birthday, so your daughter will have $1,000,000 by her 35th birthday? a. $2,317 b.$3,455 c.$5,777 d.$9,450 e.None of these solutions is correct
Suppose that between the ages of 22 and 32, you contribute $8000 per year to a 401(k) and your employer contributes $4000 per year on your behalf. The interest rate is 7.67.6% compounded annually. (a) What is the value of the 401(k) after 10 years? (b) Suppose that after 10 years of working for this firm, you move on to a new job. However, you keep your accumulated retirement funds in the 401(k). How much money will you have in the plan when you reach age 65? (c) What is the difference between the amount of money you will have accumulated in the 401(k) and the amount you contributed to the plan?
Destiny invests $20,000 today into a retirement account. She expects to earn 7 percent, compounded annually, on her money for the next 30 years. After that, she wants to be more conservative, so only expects to earn 4 percent, compounded annually. How much money will she have in her account when she retires 40 years from now, assuming this is the only deposit he makes into the account? O $225,359.94 O $152.245.10 O $377,605.04 $299,489.16 O None of the answers is correct

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