Heather is planning to retire in 10 years. She will then need an income of $1325 at the beginning of every month for the subsequent 25 years. She is going to make one investment today to provide all of the money she will eventually collect. Her investments will earn 5.44% compounded monthly. How much should she invest today? Round your answer to two decimal places. Do not enter the $ sign. Sample input: 124,340.34

Heather is planning to retire in 10 years. She will then need an income of $1325 at the beginning of every month for the subsequent 25 years. She is going to make one investment today to provide all of the money she will eventually collect. Her investments will earn 5.44% compounded monthly. How much should she invest today? Round your answer to two decimal places. Do not enter the $ sign. Sample input: 124,340.34

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Similar questions

Madalyn wants to have $180,000 in her retirement account in 35 years. She found an investment with an APR of 2.05%. 2. How much will she need to deposit each month? Write the formula used. Show the values substituted into the formula. Calculate the result. Round your answer to the nearest whole cent. 3. Calculate the total amount that Madalyn will deposit into the account over the 35 years.
Suppose you have estimated that you will need $2,500 per month in your retirement to meet your expenses and live comfortably, and that you have found or chosen a fund (account) which pays monthly interest 4% APR . What principal, or balance, will your account need to maintain in order to be able to pay you this amount each month? Round/take your answer to the nearest cent.
Maria Quick made an investment of $13, 695.17. From this investment, she will receive $1, 600 annually for the next 15 years starting one year from now. Click here to view the factor table What rate of interest will Maria's investment be earning for her? ( Hint: Use Table 4.) (For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round answer to 0 decimal places, e. g. 25%.) Rate of interest enter the rate of interest in percentages rounded to o decimal places %
3. Laura invested $325 per month into a retirement plan with an APR of 2.2% for 35 years. a. How many payments will she make altogether? b. How much will she invest altogether? c. What will the final balance of her retirement plan be? d. How much of the final account balance is interest? e. What percent of the final account balance is interest? Round to one decimal place.
Barbara Jones made an investment of $7,606.08. From this investment, she will receive $1,000 annually for the next 15 years starting one year from now. Click here to view the factor table. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) What rate of interest will Barbara's investment be earning for her? (Hint: Use Table 4.) (Round answer to 0 decimal places, e.g. 25%) Rate of interest %
Allison is 29 years old and plans to retire at age 65 with $1,470,000 in her retirement account. What amount would she have to set aside now in an investment paying 4% annual interest if the compounding is done daily (assume 365 days in a year)? Question content area bottom Part 1 The amount to be invested now is $enter your response here. (Round to the nearest cent as needed.)
Enola has $17063 saved in her RRSP. She wishes to retire in 31 years and will make quarterly contributions to her RRSP at the end of every quarter. Interest is 5.5% compounded weekly. She wants to have $438060 saved by her retirement. How much should her contributions be? Calculate the following values on the time diagram. FV * 2 = S FV * 1 = S PMT =\$
If a nurse invests $6,000 at the end of each year in her retirement account at 5% annual rate of return, what would her retirement account be worth if she retires in: (use spreadsheet)a. 20 yearsb. 30 yearsc. 35 yearsd. What if she deposits the $6,000 at the beginning of each year for 25 years?
Suppose a woman has decided to retire as soon as she has saved $800,000. Her plan is to put $950 each month into an ordinary annuity that pays an annual interest rate of 2.4%. In how many years will she be able to retire? She will be able to retire in approximately years. (Round to the nearest year as needed.) Enter your answer in the answer box and then click Check Answer. All parts showing Clear All Check Answer To see what to study next, go to your Study Plan. 99+ a 近
Betty plans to invest some money so that she has $3,800 at the end of three years. Determine how much should she invest today given the following choices: (Do not round intermediate calculations and round your final answer to the nearest penny.)a. 4.2 percent compounded daily. Amount required to be invested $ b. 4.9 percent compounded monthly. Amount required to be invested $ c. 5.2 percent compounded quarterly. Amount required to be invested $
Alec, Daniel, William, and Stephen decide today to save for retirement. Each person wants to retire by age 68 and puts $9,300 into an account earning 8% compounded annually. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided. Round your answers to 2 decimal places.) Required:Calculate how much each person will have accumulated by the age of 68. Person Age Initial Investment Accumulated Investment by Retirement (age 68) Alec 58 $9,300 Daniel 48 9,300 William 38 9,300 Stephen 28 9,300
Mary plans to invest some money so that she has $2,500 at the end of three years. Determine how much should she invest today given the following choices: (Do not round intermediate calculations and round your final answer to the nearest penny.)a. 4.2 percent compounded daily. Amount required to be invested $ b. 4.9 percent compounded monthly. Amount required to be invested $ c. 5.2 percent compounded quarterly. Amount required to be invested $ d. 5.4 percent compounded annually. Amount required to be invested $

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