Suppose you wish to retire at the age of 65 with $80,000 in savings. Determine your monthly payment into an IRA if the APR is 7.5% and you begin making payments at 20 years of age.
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Suppose you wish to retire at the age of 65 with $80,000 in savings. Determine your monthly payment into an IRA if the APR is 7.5% and you begin making payments at 20 years of age.
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- You are investing in a retirement account and plan to deposit $5,000 per year into the account for the next 20 years, starting from today. The account offers an annual interest rate of 6%. How much money will you have in your retirement account at the end of the 20-year period?if you are 18 years old, deposit $5000 each year into a traditional IRA for 52 years, at 6% interest compounded annually, and retire at age 70, how much money will be in the account upon retirement?At age 30, to save for retirement, you decide to deposit $100 at the end of each month into an IRA that pays 9.5% compounded monthly. a. How much will you have from the IRA when you retire at age 65? b. Find the interest.
- At age 30, to save for retirement, you decide to deposit $300 into an IRA at the end of each month at an interest rate of 6% per year compounded monthly. How much will you have from the IRA when you retire at age 65? Use this formula: Find how much of the total amount is from interest.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.You want to retire at age 65. You decide to make a deposit to yourself at the end of each year into an account paying 11% compounded annually. Assuming you are now 25 and can spare $1,100 per year, how much will you have when you retire at age 65?
- Investment Plans. Use the savings plan formula to answer the following question. At age 28, you set up an IRA (individual retirement account) with an APR of 5%At the end of each month, you deposit $150 in the account. How much will the IRA contain when you retire at age 65? Compare that amount to the total deposits made over the time period.You would like to have enough money saved to receive a $90,000 per year perpetuity after retirement. The annual interest rate is 8 percent. Required: How much would you need to have saved in your retirement fund to achieve this goal? a) Assume that the perpetuity payments start on the day of your retirement. b) Assume that the perpetuity payments start one year from the date of your retirement.You decide to replace your income of $70,000 a year in retirement for 30 years. How much do you need in your retirement account the day you retire to make that happen, assuming a real interest rate of 3%?
- 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. 1 Assume that the payments start on the day of your retirement. 2.Assume that the payments start one year after the retirement.You want to be able to withdraw $50,000 from your account each year for 20 years after you retire. You expect to retire in 25 years. If your account earns 8% interest, how much will you need to deposit each year until retirement to achieve your retirement goals?At the age of 24, you start depositing $200 each month into an IRA that pays 3.75% interest, compounded monthly. How much money will you have in the IRA if you retire at age 67?