Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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How much interest did you gain if you invested in a retirement plan with a rate of 2.5% over 42 years? Your monthly deposits totaled $520.
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- You have just made your first $4,500 contribution to your individual retirement account. Assume you earn an annual return of 11.3 percent and make no additional contributions. What will your account be worth when you retire in 39 years?arrow_forwardc) Retirement Investment: Savings at Retirement = Saving Periods = Interest Rate = Savings Deposit / month= monthly deposits / montharrow_forwardIn 2012 the maximum Social Security deposit by an individual was $8,386.75. Suppose you are 27 and make a deposit of this amount into an account at the end of each year. How much would you have (to the nearest dollar) when you retire if the account pays 2% compounded annually and you retire at age 65?_____$arrow_forward
- Your retirement account has a current balance of $3, 123. What interest rate would need to be earned in order to accumulate a total of $5,000,000 in 24 years by adding $3,123 annually? Is this possible? Why or why not?arrow_forwardSuppose a man retires at age 65, and in addition to Social Security, he needs $2200 per month in income. Based on an expected lifetime of 204 more months, how much would he have to invest in a life income annuity earning 4% APR to pay that much per year? (Round your answer to two decimal places.)arrow_forwardYou start investing $43,000 annually and the bank provides you 7.20% interest in your account compounded annually. At what age should you start saving in order to reach your retirement goal of $1,210,000 at age 69 ?arrow_forward
- In 2012 the maximum Social Security deposit by an individual was $8,386.75. Suppose you are 29 and make a deposit of this amount into an account at the end of each year. How much would you have (to the nearest dollar) when you retire if the account pays 3% compounded annually and you retire at age 65?$arrow_forwardReuben has decided to invest to help with his retirement savings. How much would he have to invest to have $113,400 after 19 years, assuming an interest rate of 3.43% compounded quarterly?arrow_forwardIf you would like to retire as a millionaire and make a uniform deposit of $15,000 annually at an interest rate of 6%, For how many years you have to work?arrow_forward
- Investment Plans. Use the savings plan formula to answer the following question. At age 28, you set up an IRA (individual retirement account) with an APR of 5%At the end of each month, you deposit $150 in the account. How much will the IRA contain when you retire at age 65? Compare that amount to the total deposits made over the time period.arrow_forwardou decide to replace your income of $70,000 a year in retirement for 30 years. How much do you need in your retirement account the day you retire to make that happen, assuming a real interest rate of 3%?arrow_forward
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