have $50,000 in savings for retirement in an investment earning a stated annual rate of 4% compounded quarterly. You aspire to have $1,000,000 in savings when you retir nore to your savings, how many years will it take to reach your goal? Please round your answer to the nearest hundredth.

Q: You are scheduled to receive $19,000 in two years. When you receive it, you will invest it for six…

A: Present value means today's value of the future value of money. It means that the present time…

Q: You decide to open an individual retirement account (IRA) at your local bank that pays 8%/year…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: An insurance settlement of $1.5 million must replace Trixie Eden's income for the next 35 years.…

A: Present value (PV) = $1,500,000 Interest rate = 7.5% Monthly interest rate (r) = 7.5%/12 = 0.625%…

Q: You believe you will spend $44, 000 a year for 16 years once you retire in 32 years. If the interest…

A: TVM refers to the concept that considers the effect of money's interest-earning capacity, which…

Q: If I invest today $1,000 at 6% per annum interest what will be the future value of my investment 20…

A: Amount to be invested today (X) = $1000 r = 6% n = 20 years

Q: If you want to retire with $2,000,000 in 45 years and can earn a rate of 10% with monthly…

A: The retirement amount to be required (FV) is $2,000,000. The maturity period is (NPER) 45 years. The…

Q: Assume that your client invests $2,700 at the end of each of the next two years. The investments…

A: Time value of money (TVM) refers to the concept which proves that the value of money today is higher…

Q: You have set up a life annuity with a present value of $250,000. If your life expectancy at…

A: Using the PMT function in excel

Q: Suppose you inherit a perpetuity that pays $4,000 each year. Assuming the first payment will occur…

A: The given rate is APR rate i.e. annual percentage rate. The APR is with daily compounding. The EAR…

Q: You expect to receive $10,500 at graduation in three years. You plan on Investing it at 12% until…

A: One of the important concept in finance is about time value of money. As per this concept, a dollar…

Q: What are the monthly payments you will receive if your retirement nest egg of $ 1,000,000 is in a 5%…

A: Present valueof the retirement Amount $ 10,00,000.00Interest rate5%Tenure, years20Compounding…

Q: You have $67,046.95 in a brokerage account, and you plan to deposit an additional $3,000 at the end…

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

Q: Determine the size of your investment account 30years from now (when you plan to retire) if you…

A: Future value of annuity , FV= P * ( (1+r)^t -1) /rwhere P =$12,000r=0.10t=30 yearsFV =?

Q: You are considering putting $3,500 in a savings account that pays 11 percent in interest each year.…

A: A) Future Value = Present Value*(1+Interest Rate)^No. of periods WherePresent Value = $3500Interest…

Q: You invest in an ordinary annuity $3,000 annually at 7% annual interest. What is the future value of…

A: Given:  Amount = 3000 r = 7% n = 5 years

Q: What must YOU invest today to receive an annuity of $4,500 for 10 years compounded at 8% quarterly…

A: PV of Annuity =P1-1(1+r)n r Where PV = Present Value r  = rate of interest n = Number of Period P =…

Q: You plan on investing $1.900 every 4 years while earning 6% per year. How much money will you have…

A: Future value refers to the concept of time, the value of money which is used for computing the value…

Q: You plan to make your first $6,470 contribution to your individual retirement account in 2 years.…

A: Future value refers to the value of a current asset at some future date affected by interest rate,…

Q: sume you have just found out you are entitle lling to take today in exchange for the future:

A: Answer : Future value = Present value * (1 + rate) ^Time Rate = 18% Time = 19 years

Q: If you have $325,000 saved for retirement, how many years will it last if you earn an annual…

A: In the given question we need to compute the Number of years for which saving of $325000 will last…

Q: How much you have to invest each year to reach the goal (assume end of year investments and an…

A: The retirement corpus is 750,000. To calculate the end of year payments, the PMT function in excel…

Q: You plan to retire in 20 years. At the point of retirement, you want to be able to withdraw 25478 at…

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

Q: Your pension plan is an annuity with a guaranteed return of 5.8% per year (compounded quarterly).…

A: To solve this problem, we need to break it down into two main parts:1. Accumulation Phase (Before…

Q: You have just made your first $1,500 contribution to your retirement account. Assume you earn a…

A: FV = PV(1 + r)t FV= Future Vale PV = Present Value r= rate of interest t = time in years

Q: I would like to have $50,000 after retirement in 20 years 8 months from now. How much should I…

A: Present Value(PV) is value of a future amount at current point of time. It is done by discounting…

Q: Your goal is to save up $30,000 to use as a future down payment. If you save $4,596 every year in an…

A: Here,RequiredAmount (FV) is $30,000Yearly Savings (PMT) is $4,596Interest Rate (Rate) is 3%

Q: An investor plans to save 45 years for his retirement with $500 monthly deposits. He plans to live…

A: Savings period = 45 years  Periodic savings, P = $500  Interest rate = 9%  Number of monthly…

Q: Suppose an annuity will pay $14,000 at the beginning of each year for the next 5 years. How much…

A: Annual payment (P) = $14,000 Interest rate (r) = 6.5% Period (n) = 5 Years

Q: You have $51, 854.38 in a brokerage account, and you plan to deposit an additional $3,000 at the end…

A: The time value of money is a concept in finance that takes into account the effects of compounding…

Q: At the end of this year, you intent to contribute $5000 to your retirement account. You are…

A: This is a case of growing annuity. An annuity refers to a stream of cash flows occurring repeatedly…

Q: You plan to retire at the age of 65 and be able to live for 30 years paying yourself $80,000 per…

A: Time period after retirement is 30 years. Required Retirement income is $80,000 per year. Interest…

Q: You expect to receive $3,100 upon your graduation and will invest your windfall at an interest rate…

A: Here, Particulars Values Present value of money (PV)  $ 3,100.00 Quarterly interest rate…

Q: How much can be accumulated for retirement if $2,000 is put aside at the end of each of the next 40…

A: The Future Value of an Ordinary Annuity refers to the concept which gives out the compounded or…

Q: l invest $500 per month at the end of each month for my retirement at 7.3% compounding monthly for…

A: The given problem can be solved using FV function in excel. FV function computes amount required in…

Q: You are going to receive a payment at the end of each year for the next 12 years. If you invest each…

A: The future Value of an investment is an estimation of receiving some amount after some period of…

Q: You want to retire at age 65. You decide to make a deposit to yourself at the end of each year into…

A: The Future Value of Annuity Payments refers to the value of a series of cash flows (payments or…

Q: You decide to make monthly payments into a retirement fund earning 4.75% compounded monthly. Note:…

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

Q: How much must you deposit each year into your retirement account starting now and continuing through…

A: yearly deposit refers to the amount deposited every year for the accumulation of money for the…

Q: Suppose that you save for retirement by contributing the same amount each month from your 23 rd…

A: Monthly saving (pmt) = $100Rate of Return (rate) = 7.5% or 0.075Type of Compounding = MonthlyNumber…

Q: You want to retire at age 65. You decide to make a deposit to yourself at the end of each year into…

A: Annual rate (r) = 3% or 0.03Annual Payment (P) = $1,400Number of years (n) = 65 - 25 = 40Payment…

Q: ppose you wish to retire 38 years from today. You determined that you need $220,000 per year after…

A: Amount remianing after 22 withdrawal is the present value of remaining 8 payments after 22 payments.

Q: Your retiring will be in 2036. You need to invest some money so that you can earn 10,000 per year…

A: The annuity value is determined with the help of company accumulating a fixed amount at particular…