Ishan plans to retire at age 40 with a decent lifestyle. He assumes that he can safely earn a real return of 4% annually on his money and that he would need $4000 a month to last until he turned 90. How much money would he need to have accumulated at age 40 (to the nearest thousand) if he were going to retire and no longer earn any money? $1 500 000 $1 050 000 $2 980 000 $ 2 400 000

Ishan plans to retire at age 40 with a decent lifestyle. He assumes that he can safely earn a real return of 4% annually on his money and that he would need $4000 a month to last until he turned 90. How much money would he need to have accumulated at age 40 (to the nearest thousand) if he were going to retire and no longer earn any money? $1 500 000 $1 050 000 $2 980 000 $ 2 400 000

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

9
Gina is 25 years old and wants to save $800,000 for retirement in 30 years. Assume she invests in a savings account that earns at least the current rate of inflation (6.5%). Determine how much money Gina must save based on the number of years that she waits to start saving to reach her retirement goal. Years of Waiting to Save Principal Required 0 10 20 30 $800,000
An engineer is considering buying a life insurance policy for his family. He currently owes $65,000 and he would like his family to have an annual available income of $50,000 indefinitely. If the engineer assumes that any money from the insurance policy can be invested in an account paying a guaranteed 5% annual interest, how much life insurance should he buy? $1,000,000 $1,065,000 ● $2,000,000 $2,130,000
What does Shelley need to save monthly to make sure she is on track to reach her retirement goal of having $440,000 saved by the time she reaches age 65? She is 48 years old, has been contributing $400 per month and has $180, 000 in her RRSP. Assume she will make an annual return of seven percent. Select one: a. $1275 b. $336 c. $681 d. $1133
Your parents will retire in 20 years and currently have $108,000 saved in a retirement account. They think they will be okay with $700,000 at retirement since your mom also has a pension and they should both get some money from Social Security. What annual interest rate must they earn to reach their goal, assuming they don't save any additional funds? 7.02% 8.36% 8.97% 9.80% 10.31%.
Laura and Alan are a young married couple with three small children. Alan earns $60,000 a year, but Laura has no earned income. What is the maximum total contribution Laura and Alan can make to their IRA accounts in 2022? $5,500 $12,000 $6,000 O $14,000 O $7,000
ff2
A couple just got married and they are both 25 years of age. They each plan to retire in 40 years at the age of 65. They want to be able to receive $200,000 at the end of each year for 20 years, upon retirement(so their first retirement payment will be at 41)Currently they have a total of $2,000 in cash savings. How much must they save at the end of each year for the next 40 years so as to have enough money to achieve their current goal? Assume the interest rate is 8% and will remain the same. Also assume that they start saving at the end of the first year.
B. He has decided he wants to save $1,000,000 before he retires. If he saves for 30 years, earning 6%, how much must he save each month to retire with a million dollars after 30 years?
Mr. Waleed is 25 years old and he has just started his career in the field of Marketing. Waleed has a long-term goal of purchasing his dream house at a age of 40 years, which is costing him OMR 150,000. Currently Waleed has inherited OMR 25,000 from his parents. Waleed has two options available for him as follows; Option 1 – Invest his money at compound interest rate of 10 % Semi Annually Option 2 – Invest his money at a compound interest rate of 8% Quarterly A. Compute the values under both option at the age of 40 years and advice which is the most suitable option to reach his goal? B. As of today, Waleed’s dream house is costing him OMR 150,000. Will the value be the same in 40 years’ time? Explain?
Please help me answer the following time value of money question. Andrew is a high speed 25 year old. He wants to have a quarter of a million dollars by the time he reaches 60. If he can earn 6%, how much does he need to invest to reach his goal?
Juan plans on saving $8000 each year starting at age 25 each year through age 65 (40 years). If he earns a “gross” 8% on his savings each year, how much money will he have at retirement if his account expense ratio is: 0.50% =$???????????? or 0.05%= $?????????????

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