Suppose you begin saving for your retirement by depositing $2,000 per year in an IRA. If the interest rate is 7.5%, how much will you have in 40 years?
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Suppose you begin saving for your retirement by depositing $2,000 per year in an IRA. If the interest rate is 7.5%, how much will you have in 40 years?
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- 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 annuityb) Suppose you begin saving for your retirement by depositing $2,000 per year in an IRA. If the interest rate is 7.5%, how much will you have in 40 years if the payments are made: at the end of the year (ordinary annuity)? at the beginning of the year (annuity due)?c) Retirement Investment: Savings at Retirement = Saving Periods = Interest Rate = Savings Deposit / month= monthly deposits / month
- 4. You want to have a retirement fund of $200,000 available when you retire. You invest in an IRA to achieve this goal. The IRA has an annual return of 8%. How much do you need to invest each month to meet your retirement goals if you will retire in 25 years?How much must you deposit each year into your retirement account starting now and continuing through year 10 if you want to be able to withdraw $80,000 per year forever, beginning 31 years from now? Assume the account earns interest at 15% per year. What is the answer, and how can I get it?3. You would like to retire in 30 years and you have calculated that you will need to save $2 million dollars by then to retire comfortably. How much must you put into your retirement savings account at the end of each month between now and retirement (assume an interest rate of 3.5% quarterly)?
- Calculate how much you will have to save each month between now and then to have $300,000 in your retirement account when you retire at 65, assuming a rate of return of 5% per year? (Show your final calculations for saving at retirement, saving periods, interest rate, and saving deposit/month)Suppose you wish to retire forty years from today. You determine that you need $50,000 per year once you retire, with the first retirement funds withdrawn one year from the day you retire. You estimate that you will earn 6% per year on your retirement funds and that you will need funds up to 25 years after retirement. Use the PV of an ordinary annuity due formula. a) Calculate the amount you must deposit in an account today so that you have enough funds for retirement b) Calculate the amount you must deposit each year, starting one year from today, so that you have enough funds for retirement.You are planning to invest $6,000 in an account earning 10% per year for retirement. a. If you put the $6,000 in an account at age 23, and withdraw it 33 years later, how much will you have? b. If you wait 10 years before making the deposit, so that it stays in the account for only 23 years, how much will you have at the end? ...
- 7. You have just made your first P2,000 contribution to your individual retirement account. Assuming you earn a 10 percent rate of return and make no additional contributions, what will your account be worth when you retire in 45 years? What if you wait 10 years before contributing? 8. You are scheduled to receive P30,000 in two years. When you receive it, you will invest it for six more years at 6.5. percent per year. How much will you have in eight years? 9. The first comic book featuring Superman was sold in 1938. In 2003, the estimated price for this comic book in good condition was about P350,000. This represented a return of 26.09 percent per year. For this to be true, what must the comic book have sold for when new? 10. You are trying to save to buy a new P150,000 car. You have P40,000 today that can be invested at your bank. The bank pays 5.5. percent annual interest on its accounts. How long will it be before you have enough to buy the car?You deposit $4000 into a retirement account each year. The account pays 8℅ interest. How much will you have in 25 years when you retire?Suppose you plan to retire at age 70, and you want to be able to withdraw an amount of $60,000 per year on each birthday from age 70 to age 100 (a total of 31 withdrawals). If the account which contains your savings earns 6.6% per year simple interest, how much money needs to be in the account by the time you reach your 70th birthday?