Depositing $1,000 in a 5 percent account at age 40 will give you $3387 at age 65. Please show formula to getting the answer of $3387

Q: Consider a retirement financial plan where you begin contributing at the age of 25. In this plan you…

A: Discounting: Discounting is the process of determining a future sum of money's present value. The…

Q: Alec, Daniel, William, and Stephen decide today to save for retirement. Each person wants to retire…

A: Future value is the amount that was deposited and the amount of compounded interest accumulated over…

Q: Suppose you want to have $400,000 for retirement in 20 years. Your account earns 8% interest. How…

A: Here, Particulars Values Future value (FV)  $ 4,00,000.00 Annual interest rate 8.00% Time…

Q: You wish to retire 40 years from now. You want OMR 50,000 per year once you retire with the first…

A: The present value function or concept can be used to determine the present value of a future sum or…

Q: A 55-year-old man deposits $50,000 to fund an annuity with an insurance company. The money will be…

A: Semi-annual payment refers to an amount that is paid at every semi-annual period for the repayment…

Q: You want to retire exactly 35 years from today with $1,990,000 in your retirement account. If you…

A: Monthly deposits are the amount of money kept aside that earns a defined rate of interest for a…

Q: After graduating from Eastern, you have gotten an extremely good job that you enjoy. Your plan is to…

A: An annuity is a series of payments compounded at a specified rate for a specified period of time to…

Q: You would like to receive $6000 per month for 30 years after you retire in 40 years from now. The…

A: This pertains to time value of money. The monthly amount that you will deposit will grow in future…

Q: An individual wants to retire in 25 years and requires $300,000 in savings at that time. The…

A: We need to use RATE function in excel to calculate annual rate of interest on deposit.The formula is…

Q: Please help me answer the following time value of money question Joseph wants to have a quarter of…

A: Given Interest Rate = 6% Amount required at the end of term = $250000 Term = 23 years Time Value of…

Q: At age 18​, someone sets up an IRA​ (individual retirement​ account) with an APR of 4​%. At the end…

A: Future value is the estimation of future cash value which is likely to be received in the future…

Q: When you retire, you plan to draw $50,000 per year from your retirement accounts, which will be…

A: Annuity is the no. of payments which are equal in size and made in equal interval of time. Person…

Q: Problem 8 How much money will I need to have at retirement so I can withdraw $24,000 a year for 25…

A: Present value is the present worth of any sum of money to be received in the future at a specified…

Q: You want to retire exactly 35 years from today with $2,080,000 in your retirement account. If you…

A: An annuity refers to a series of equal cash flows received or paid at regular intervals for a…

Q: Your grandfather put some money into an account for you on the day you were born. You are now 18…

A: To calculate the future value of the account at your 25th birthday, we will use the formula for…

Q: You annually invest $1,500 in an individual retirement account (IRA) starting at the age of 25 and…

A: Your annual investment, PMT = $ 1,500    Starting age = 25Number of Years, n = 15Annual Interest…

Q: Case B - You estimate that you will have $43,000 of school loans by the time you graduate. Your…

A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one…

Q: Please respond to the following scenarios as part of the Week 1: Calculating the Time Value of Money…

A: The time value of money is a principal used in valuation, which takes into account the effect of…

Q: A self-employed person deposits $2,000 annually in a retirement account (called a Keogh or H.R. 10…

A: The value of current asset for the future date based on the growing interest will be known as the…

Q: if you deposit $500/month into a college fund with APR 4.5%, how much do you have after 18 years…

A: The future value of an ordinary annuity is the accumulated value of an equal amount of deposits made…

Q: Today you turn 25. At the age of 60 you want to retire with $3 million in your retirement account.…

A: Future value of annuity = C x [( 1 +r)n-1 / r ]Future value of annuity= 3x106 =…

Q: You are 20 years old today.  You plan to start saving for retirement on your 29th birthday in the…

A: The process of developing a plan for one's future is referred to as financial planning. It aids…

Q: At retirement age in 2021, an individual has an average yearly indexed income of $40,000. How much…

A: PIA: A PIA (Primary Insurance Amount) is the monetary benefit (rounded up to the next $1) that is…

Q: enefits. Therefore, you opened your retirement account with a 7% annual interest rate. At retirement…

A: Given as, Annuity sum required after 30 years for 20 year is $50,000 Annual coupon rate is 6%…

Q: You have just won the lottery and will receive a lump sum payment of $23.49 million after taxes.…

A: Present value is an estimate of the present value of future cash values ​​that may be received at a…

Q: You want to have $51,000 in your savings account 9 years from now, and you're prepared to make equal…

A: Payment per period is the regular payments made or received of an investment, while future value is…

Q: A couple thinking about retirement decide to put aside $12,500 each year in a savings plan that…

A: The questions require the determination of the future value of an annuity and the future value of a…

Q: When you begin your new job, your employer says they will match any 401k deposits you make by 50% up…

A: Employee contribution to 401K refers to the amount of money an employee chooses to contribute from…

Q: Chris invests $19,000 at 4% simple interest for 7 year. How much is in the account at the end of the…

A: Investment is the practice of exchanging current revenue for an asset that is expected to provide…

Q: Select one: a. $1,449,334 b. 579,360 C. $115.594 d. $1,108,432 e. $147.332

A: interest rate =9.25 semiannual =4.625 Period =15 years  Period =30 semiannual  Present value FACTOR…

Q: If you borrow $250,000 at 10% for 10 years, what is your annual debt service? Please write answers…

A: Annual debt serive payment is the amount that the borrower would need to pay each year to service…

Q: Suppose you wish to retire 40 years from today you determine you need $50,000 per year once you…

A: Given: Payment = $50,000 Interest rate = 6% Retirement years = 25 Retire in = 40

Q: Part 1: Data Tables You have decided to start saving for retirement. You plan to work for 35 years…

A: Retirement planning is a means of planning to achieve financial independence in the future and to…

Q: During 2020, Alissa had the following transactions: Salary $80,000 Interest income on savings…

A: Inheritance from aunt : $ 30000 It is not included while calculating adjusted gross Income…

Q: You annually invest $2,000 in an individual retirement account (IRA) starting at the age of 30 and…

A: Since, in this question fixed amount is invested each year. So, it is the question of annuity.…

Q: If you deposit $2,000 into an account at the end of each of the next 40 years, at 4.5% interest, how…

A: It can be solved using  In excel FV (rate, nper, pmt, [Pv], [type]) Rate The interest rate for the…

Q: Alec, Daniel, William, and Stephen decide today to save for retirement. Each person wants to retire…

A: Time, the value of money refers to the concept used by investors for estimating the returns over the…

Q: Your grandfather put some money in an account for you on the day you were born. You are now 18 years…

A: Here we can use the concept and formulas of time value of money to solve the questions. Time value…

Q: You are trying to calculate how much money you should have at retirement. On your 60th birthday you…

A: Annuity refers to a stream of constant cash flows occurring at fixed intervals like monthly,…

Q: Amir needs 12000 to get his business started as soon as possible. He decides to take a loan from a…

A: Amount needed = 12000 Discount amount = 354.15

Q: Suppose you want to have $400,000 for retirement in 35 years. Your account earns 5% interest. How…

A: Future Value is that amount which is received by the investor at the end of the investment period.…

Q: Alan Hitchcock is 40 years old today and he wishes to accumulate $524,000 by his 65 th birthday so…

A: To calculate the annual deposit Alan must make, we can use the future value of an ordinary annuity…

Q: Creating a retirement fund Personal Finance Problem To supplement your retirement, you estimate that…

A: The concept of time value of money will be used here. As per the concept of time value of money the…

Q: Investment strategy: Financial Mathematics You have just made your first $5,000 contribution to your…

A: Future Value = Present value*(1+Interest rate)*No. of periods WherePresent Value = $5,000Interest…

Q: On January 1, 2018, you deposited $5,500 in a savings account. The account will earn 8 percent…

A: Compound interest:In compound interest syatem interest is computed may be in months, quarterly, half…

Q: You are planning on enrolling in the Master of Finance in 4 years time and will be required to pay…

A: We need to calculate present value of fees to be paid at enrolment. the $45,000 fees is the future…

Q: (Retirement Planing) Now you are 22 years old, you want to retire ate age 65. You would like to…

A: Current Age 22 years Retirement age 65 Semi annual payment amount after retirement is $70,000 Gift…

Employer Pension Plan

An employer pension plan is a retirement benefit provided by an employer to employees before or after they retire. Over the course of the employees' working lives, the employer should invest a lump sum or make monthly contributions to investment schemes in employees' names. It is the employer's legal responsibility to provide employees with retirement plans that support them with guaranteed financial security in retirement.