Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Suppose you want to have $500,000 for retirement in 35 years. Your account earns 6% interest. How much would you need to deposit in the account each month?
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- You have $400,000 saved for retirement. Your account earns 6% interest. How much will you be able to pull out each month, if you want to be able to take withdrawals for 20 years? Sarrow_forwardSuppose you want to have $500,000 for retirement in 25 years. Your account earns 9% interest. a) How much would you need to deposit in the account each month? b) How much interest will you earn?arrow_forwardYou are planning to invest $2,000 in an account earning 12% per year for retirement. a. If you put the $2,000 in an account at age 23, and withdraw it 36 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 26 years, how much will you have at the end? a. If you put the $2,000 in an account at age 23, and withdraw it 36 years later, how much will you have? In 36 years you would have $. (Round to the nearest cent.)arrow_forward
- You have $400,000 saved for retirement. Your account earns 7% interest. How much will you be able to pull out each month, if you want to be able to take withdrawals for 25 years?arrow_forwardYou want to be able to withdraw $35,000 from your account each year for 20 years after you retire. You expect to retire in 15 years. If your account earns 10% interest, how much will you need to deposit each year until retirement to achieve your retirement goals?arrow_forwardYou want to be able to withdraw $50,000 from your account each year for 25 years after you retire. You expect to retire in 15 years. If your account earns 7% interest, how much will you need to deposit each year until retirement to achieve your retirement goals?arrow_forward
- Suppose you want to save $220,000 for retirement. You will do so by putting monthly deposits into an account that gets 5% interest compounded monthly for 30 years. What should your monthly deposits be? Round your answer to the nearest cent and include units. Make sure you show the formula you used and the values you filled in.arrow_forwardif you deposit $17,000 in the bank today, you will be able to withdraw $24,000 from the account in six years. what is the implied rate that the back is paying?arrow_forwardSuppose 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?arrow_forward
- You have $500,000 saved for retirement. Your account earns 5% interest. How much will you be able to pull out each month, if you want to be able to take withdrawals for 20 yearsarrow_forwardSuppose you want to have $800,000.00 for retirement in 30 years. You plan to make regular monthly deposits into an account earning 5% interest compounded monthly.arrow_forwardHow much would be in your savings account in 12 years if you deposited $1,500 today? Assume the bank pays 5 percent per year.arrow_forward
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