Lifetime savings accounts, known as LSAS, allow people to invest after-tax money without being taxed on any of the gains. If an engineer invests $14,000 now and $14,000 each year for the next 11 years, how much will be in the account immediately after the last deposit, provided the account grows by 11% per year? After the last deposit, the balance in the account will be $
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- You want to accumulate $1 million by your retirement date, which is 25 years from now. You will make 25 deposits in your bank, with the first occurring today. The bank pays 8% interest, compounded annually. You expect to receive annual raises of 3%, which will offset inflation, and you will let the amount you deposit each year also grow by 3% (i.e., your second deposit will be 3% greater than your first, the third will be 3% greater than the second, etc.). How much must your first deposit be if you are to meet your goal?You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years. Which table will help you determine the value of your account at the end of 12 years? A. future value of one dollar ($1) B. present value of one dollar ($1) C. future value of an ordinary annuity D. present value of an ordinary annuityLifetime savings accounts, known as LSAS, allow people to invest after-tax money without being taxed on any of the gains. If an engineer invests $18,000 now and $18,000 each year for the next 14 years, how much will be in the account immediately after the last deposit, provided the account grows by 11% per year? After the last deposit, the balance in the account will be $
- Lifetime Savings Accounts, known as LSAs, allow people to invest after-tax money without being taxed on any of the gains. If an engineer invests Php10,000 now and Php10,000 each year for the next 20 years, how much will be in the account immediately after the last deposit, provided the account grows by 10% per year?Lifetime Savings Accounts, known as LSAs, allow people to invest after-tax money without being taxed on any of the gains. An engineer began his LSA by investing $10,000 five years ago and increased his deposit by $1000 each year, including a deposit today. How much will be in the account immediately after today’s deposit (after a total of 6 deposits), if the account grew at a rate of 12% per year?After retirement, you expect to live for 25 years. You would like to have a $95,000 income each year. The annual interest rate is 9 percent per year. Required: Calculate the amount of savings you have in your retirement account to receive this income. A) Assume that the payments start on the day of your retirement. B) Assume that the payments start one year after the retirement.
- In wisely planning for your retirement, you invest $35,000 per year for 20 years into a 401k tax-deferred account. Assume you make a real return of 10% per year when the inflation rate averages 3.4% per year. How many future dollars will you have in the account immediately after your last deposit? You will have $ 3788484. future dollars in your account immediately after your last deposit.In wisely planning for your retirement, you invest $27,000 per year for 20 years into a 401K tax-deferred account. Assume you make a real return of 10% per year when the inflation rate averages 2.6% per year. How many future dollars will you have in the account immediately after your last deposit? How much will you be able to withdraw each year for 18 years, starting one year after your last deposit?It is estimated that you will pay about $80,000 into the Social Security system (FICA) over your 40-year work span. For simplicity, assume this is an annuity of $2,000 per year, starting with your 26th birthday and continuing through your 65th birthday. Solve, a. What is the future equivalent worth of your Social Security savings when you retire at age 65 if the government’s interest rate is 6% per year? b. What annual withdrawal can you make if you expect to live 20 years in retirement? Let i= 6% per year.
- To supplement your retirement, you estimate that you need to accumulate $290,000 exactly 41 years from today. You plan to make equal, end-of-year deposits into an account paying 8% annual interest. a. How large must the annual deposits be to create the $290,000 fund by the end of 41 years? b. If you can afford to deposit only $800 per year into the account, how much will you have accumulated in 41 years?In wisely planning for your retirement, you invest $27,000 per year for 20 years into a 401K tax-deferred account. Assume you make a real return of 10% per year when the inflation rate averages 2.6% per year. How many future dollars will you have in the account immediately after your last deposit?You estimate you need to supplement your social security payments with monthly withdrawals of $3,420.00 per month from a private investment account during the first 24 years of your retirement. Assuming you can earn annual returns of 6.9% in your investment account during your retirement years, how much money do you need to have accumulated in your investment account by the day you retire in order to fund the aforementioned monthly withdrawals?