Lindsay is 25 years old and has a new job in web development. She wants to make sure that she is financially sound in 30 years, so she plans to invest the same amountinto a retirement account at the end of every year for the next 30 years. Note that because Lindsay invests at the end of the year, there is no interest earned on thecontribution for the year in which she contributes.(a) Construct a data table that will show Lindsay the balance of her retirement account for various levels of annual investment and return. If Lindsay invests $12,000 ata return of 11% how much will she have (in dollars) in her retirement account at the end of 30 years. (Round your answer to the nearest dollar.)(b) Develop the two-way table for annual investment amounts of $5,000 to $20,000 in increments of $1,000 and for returns of 0% to 12% in increments of 1%. Usingthe table, what are the minimum annual investments Lindsay must contribute (in dollars) for annual rates ranging from 7% to 11% to accrue a final value of$1,300,000 after 30 years. (Round your answers up to the nearest thousand dollars.)Quantity OrderedAnnual ReturnMinimum Annual Investment7%8%9%10%11%

(a) The formula for the future value of an annuity (a series of equal payments made at regular…

Answered: Lindsay is 25 years old and has a new…

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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Lindsay is 25 years old and has a new job in web development. She wants to make sure that she is financially sound in 30 years, so she plans to invest the same amount into retirement account at the end of every year for the next 30 years. Note that because Lindsay invests at the end of the year, there is no interest earned on the contribution for the year in which she contributes. (a) Construct a data table that will show Lindsay the balance of her retirement account for various levels of annual investment and return. If Lindsay invests $12,000 at a return of 11% how much will she have (in dollars) in her retirement account at the end of 30 years. (Round your answer to the nearest dollar.) $ 790582 (b) Develop the two-way table for annual investment amounts of $5,000 to $20,000 in increments of $1,000 and for returns of 0% to 12% in increments of 1%. Using the table, what are the minimum annual investments Lindsay must contribute (in dollars) for annual rates ranging from 7% to 11% to…
Lindsay is 25 years old and has a new job in web development. She wants to make sure that she is financially sound in 30 years, so she plans to invest the same amount into a retirement account at the end of every year for the next 30 years. Note that because Lindsay invests at the end of the year, there is no interest earned on the contribution for the year in which she contributes. (a) Construct a data table that will show Lindsay the balance of her retirement account for various levels of annual investment and return. If Lindsay invests $14,000 at a return of 9% how much will she have (in dollars) in her retirement account at the end of 30 years. (Round your answer to the nearest dollar.) $ 790582 X (b) Develop the two-way table for annual investment amounts of $5,000 to $20,000 in increments of $1,000 and for returns of 0% to 12% in increments of 1%. Using the table, what are the minimum annual investments Lindsay must contribute (in dollars) for annual rates ranging from 7% to 11%…
Lindsay is 25 years old and has a new job in web development. She wants to make sure that she is financially sound in 30 years, so she plans to invest the same amount into a retirement account at the end of every year for the next 30 years. Note that because Lindsay invests at the end of the year, there is no interest earned on the contribution for the year in which she contributes. (a) Construct a data table that will show Lindsay the balance of her retirement account for various levels of annual investment and return. If Lindsay invests $12,000 at a return of 11% how much will she have (in dollars) in her retirement account at the end of 30 years. (Round your answer to the nearest dollar.) $ (b) Develop the two-way table for annual investment amounts of $5,000 to $20,000 in increments of $1,000 and for returns of 0% to 12% in increments of 1%. Using the table, what are the minimum annual investments Lindsay must contribute (in dollars) for annual rates ranging from 7% to 11% to…
Lindsay is 25 years old and has a new job in web development. She wants to make sure that she is financially sound in 30 years, so she plans to invest the same amount into a retirement account at the end of every year for the next 30 years. Note that because Lindsay invests at the end of the year, there is no interest earned on the contribution for the year in which she contributes. (a) Construct a data table that will show Lindsay the balance of her retirement account for various levels of annual investment and return. If Lindsay invests $12,000 at a return of 7% how much will she have (in dollars) in her retirement account at the end of 30 years. (Round your answer to the nearest dollar.) $ (b) Develop the two-way table for annual investment amounts of $5,000 to $20,000 in increments of $1,000 and for returns of 0% to 12% in increments of 1%. Using the table, what are the minimum annual investments Lindsay must contribute (in dollars) for annual rates ranging from 7% to 11% to accrue…
Lindsay is 29 years old and has a new job in web development. She wants to make sure that she is financially sound by the age of 55, so she plans to invest the same amount into a retirement account at the end of every year for the next 26 years. (a) Construct a data table in Excel that will show Lindsay the balance of her retirement account for various levels of annual investment and return. If Lindsay invests $10,000 at return of 6%, what would be the balance at the end of the 26th year? Note that because Lindsay invests at the end of the year, there is no interest earned on the contribution for the year in which she contributes. Round your answer to a whole dollar amount. $ 10,000
Lindsay is 25 years old and has a new job in web development. Lindsay wants to make sure that they are financially sound in 30 years. So, Lindsay plans to invest the same amount into a retirement account at the end of every year for the next 30 years. Note that because Lindsay invests at the end of the year, there is no interest earned on the contribution for the year in which Lindsay contributes. (a) Construct a spreadsheet model that will calculate Lindsay's retirement savings given a fixed annual amount saved and a fixed annual interest rate of return. If Lindsay invests $13,000 at an annual return of 7%, how much will be in the retirement account (in dollars) at the end of 30 years? (Round your answer to the nearest dollar.) $ (b) Develop a two-way table for annual investment amounts of $5,000 to $20,000 in increments of $1,000 and for returns of 0% to 12% in increments of 1%. Using the table, what are the minimum annual investments Lindsay must contribute (in dollars) for…
Lindsay is 25 years old and has a new job in web development. She wants to make sure that she is financially sound in 30 years, so she plans to invest the same amount into a retirement account at the end of every year for the next 30 years. Note that because Lindsay invests at the end of the year, there is no interest earned on the contribution for the year in which she contributes. (a) Construct a data table that will show Lindsay the balance of her retirement account for various levels of annual investment and return. If Lindsay invests $14,000 at a return of 11% how much will she have (in dollars) in her retirement account at the end of 30 years. (Round your answer to the nearest dollar.) $ (b) Develop the two-way table for annual investment amounts of $5,000 to $20,000 in increments of $1,000 and for returns of 0% to 12% in increments of 1%. Using the table, what are the minimum annual investments Lindsay must contribute (in dollars) for annual rates ranging from 7% to 11% to…
Kim decides to retire in 15 years but she has nothing saved. She wants to receive $3,000 per month for 25 years when she retires and she found an account that will pay 6%. How much money does Kim need to contribute per month to reach your goal? (Do not round intermeiate calculations and round your final answer to 2 decimal places.) NOTE: Provide a format and show your work (example: N = 6, PV = XXX, I = X%, etc.)
Jackie is 34 years old. She would like to have $850,000 in her retirement account when she is 65 years old. Show work and write your answer in a complete sentence.a. How much would she need to deposit every month into an account with a 7.25% interest rate?b. If she had started the account at the age of 21 with the same interest rate, how much would she need to deposit every month to achieve her goal?c. How much would she need to deposit as a lump sum (principal) at age 21 with the same interest rate (without making another payment) to have a million dollars at age 65
Maude worked as a Software Developer for Microsoft for 3 internships. She was just hired full-time after graduating from Concordia in December 2022. On her first day of work on January 1, 2023, she was offered to participate in the company’s retirement plan which is a Defined Contribution Pension Plan (DCPP). After having taken a Personal Finance course, Maude enrolled immediately on her first day, as she knows the benefit of putting money away early and having it grow even though she is a long way from retirement. Whatever Maude contributes, Microsoft doubles her contributions dollar for dollar. So far the plan averages a return of 7% compounded weekly. Both Maude and her employer contribute at the beginning of each month. Maude is only 24 years old with plans to retire early at age 55. Maude can afford to contribute $300/month. How much will she have in her retirement plan at retirement?.
Maude worked as a Software Developer for Microsoft for 3 internships. She was just hired full- time after graduating from Concordia in December 2022. On her first day of work on January 1, 2023, she was offered to participate in the company's retirement plan which is a Defined Contribution Pension Plan (DCPP). After having taken a Personal Finance course, Maude enrolled immediately on her first day, as she knows the benefit of putting money away early and having it grow even though she is a long way from retirement. Whatever Maude contributes, Microsoft doubles her contributions dollar for dollar. So far the plan averages a return of 7% compounded weekly. Both Maude and her employer contribute at the beginning of each month. Maude is only 24 years old with plans to retire early at age 55. Maude can afford to contribute $300/month. How much will she have in her retirement plan at retirement? Select one: O a. $1,199.315 O b. $1,370,436 O c. $1,361,560 O d. $1,192,344 O e. $1,355,876
Katie recently retired and met with her financial planner. She arranged to receive $45,000 the first year. Because of inflation each year she will get $580 more than she received the previous year. A. What income will she receive in her 11th year of retirement? B. How much money will she have received in total during her first 11 years of retirement?

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