Nick, age 30, is starting his savings plan this year by putting away $2,900.00 at the end of every year until he reaches age 65. He will deposit this money at his local savings and loan at an interest rate of 6%. The future value annuity interest factor is 111.4348.   You can also use the excel future value (FV) function to solve this problem. =FV(rate,nper,pmt,[pv],[type]) • rate: The interest rate per period. This input is required. • nper: The total number of payment periods. This input is required. • pmt: The constant payment made in each period. This input is required if pmt is omitted. • pv: The present value or lump-sum amount. This input is required if pmt is omitted. • type: A 0 or 1 depending on if payments are due at the beginning or end of the period. This input is optional and 0 will be used if it is omitted.   Based on the information provided, by the time Nick turns 65, he will have    .

Compound interest is a very powerful way to save for your retirement. Saving a little and giving it time to grow is often more effective than saving a lot over a short period of time. To illustrate this, suppose your goal is to save $1 million by the age of 70. What amount of money will be saved by socking away $3,038 per year starting at age 23 with a 7% annual interest rate. Will you achieve your goal using the long-term savings plan? What amount of money will be saved by socking away $20,406 per year starting at age 48 at the same interest rate? Will you achieve your goal using the short-term savings plan? Click the icon to view the interest and annuity table for discrete compounding when i = 7% per year. The future equivalent of the long-term savings plan is $. (Round to the nearest dollar.) C

Suppose you start saving for retirement when you are 45 years old. You invest $5,200 the first year and increase this amount by 2% each year to match inflation for a total of 15 years. The interest rate is 7% per year. How much money will you have saved when you are 60 years old? Click the icon to view the interest and annuity table for discrete compounding when i = 2% per year. Click the icon to view the interest and annuity table for discrete compounding when i = 7% per year. When you are 60 years old, you will have saved $. (Round to the nearest dollar.)

Don’t use excel Use formula or factor

Before last year, Ellie (Luke's wife) taught music and earned $30,400. She also earned $9,600 by renting out their basement as a studio apartment. Ellie saves every month. At the end of a typical year she would have saved a total of 10% from her wages and the income earned from the basement for the entire year, and earned a total of 0.5% in interest (for the entire year). At the beginning of last year, Ellie stopped teaching music. She also stopped renting out their basement, and began to use it as the office for her new web design business. The balance on her savings account was $150,000, and she took $5,000 from this account to buy a new laptop computer and a new printer (which also functions as a scanner and a facsimile). She also borrowed $12,000 from the local bank to purchase additional machinery and equipment (a graphics tablet, desktop computer, studio camera and an external hard drive). Her loan payment is $250 per month. During last year, she paid $3,000 for the lease of a…

Which statement is true? a) An arithmetic gradient sits atop a present worth b) An arithmetic gradient increases or decreases by a constant percentage over time c) The Future worth of an annuity is one time period to the right of the last arrow d) All of the above e) None of the above

4) (28 points) An employee has decided to make annual contributions over a 15-year period into a retirement fund. She wants to make her first contribution of $5,000 one year from now (t=1). She then plans to increase her annual contribution by $500 each year for the remaining years. The fund is expected to earn 15% per year compounded annually. She decides to retire in 15 years (from now). a) (20 points) Assuming that the fund will be depleted when the last withdrawal is made, what equal amount can she withdraw annually for a period of 10 years starting one year after retirement? b) (8 points) If she wants the fund to have a balance at the time of the 10th withdrawal exactly equal to the balance it had when she retired, what equal amount can she withdraw annually for a period of 10 years starting one year after retirement?

Provide Cash Flow Diagram, solution and discussion. Subject : ME Economics   3.How much money should be deposited each year for 12 years if you wish to withdraw $309 each year for five years, beginning at the end of the 14th year? Let i= 8% per year.