You want to be able to withdraw $20,000 each year for 30 years. Your account earns 5% interest. How much do you need in your account in the beginning? how much total money will you pull out of the account? how much of that money is interest?

You want to be able to withdraw $20,000 each year for 30 years. Your account earns 5% interest. How much do you need in your account in the beginning? how much total money will you pull out of the account? how much of that money is interest?

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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You want to be able to withdraw $20,000 each year for 30 years. Your account earns 5% interest. How much do you need in your account in the beginning?

how much total money will you pull out of the account?

how much of that money is interest?

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You want to be able to withdraw $30,000 each year for 15 years. Your account earns 6% interest. How much do you need in your account at the beginning?
a. You need $17,000 in five years but you only have $12,000 now. At what interest rate must you invest the money assuming the interest is compounded annually? b. You have a $20,000 note payable which is due in three years. How much money must you put into a savings account today in order to have enough money to pay off the debt on time assuming your savings account earns 3% interest compounded annually? c. You put $2,750 into an account earnings 4% interest compounded QUARTERLY. How much will be in this account at the end of 4 YEARS? d. In question “b." above, if you leave he money in the account for one more YEAR, how much more interest will you earn in that additional year (Year 5)? e. How long will it take to double $2,000 to $4,000 assuming you invest the $2,000 into an account earning 7% interest compounded annually?
Answer the given question with a proper explanation and step-by-step solution. Please provide the answer using the math tool otherwise I give the downvote.
Jill wants to make a few deposits so that she can withdraw $5000 per year at the end of each year for the next 15 years. A deposit of X is made a year from now, a second deposit of 2X is made at the end of year 4, and a deposit of (X/2) is made at the end of year (5+4). What is the amount of X if the goal is to empty the account? Use 6% interest.
Suppose you deposit $4,000 in a savings account paying 10% simple interest. How much money will you have in your account after 4 years?
You need to have $18,000 to pay for your car in 7 years. How much do you need to deposit today in a bank that pays 5% interest, compounded annually, in order to achieve your goal?
You have $500,000 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?
You want to withdraw $30,000 a year for 30 years. Your account earns 12% interest. How much do you need in the account to be able to do this? A) $241,655.52 B) $231,647.39 C) $245,723.12 D) $198,789.56
Mf4. You have $400,000 saved for retirement. Your account earns 9% interest. How much will you be able to pull out each month, if you want to be able to take withdrawals for 15 years? You want to be able to withdraw $40,000 each year for 20 years. Your account earns 8% interest. a) How much do you need in your account at the beginning? b) How much total money will you pull out of the account? c) How much of that money is interest? A state lotto has a prize that pays $600 each week for 30 years. Find the total value of the prize: $ If the state can earn 3% interest on investments, how much money will they need to put into an account now to cover the weekly prize payments? Reminder: There are 52 weeks in a year.
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You deposit $204 today into a bank account that earns 1% annually. How much will be in your account after 10 years?
1. Find FV: You have $2,000 in a savings account that earns 1.5% interest per year. What will be the balance in your account: in one year? in five years? in ten years? 2. Find r: You have $2,000 in a money market account. If you make no deposits to or withdrawals from this account, in 10 years you will have: $10,000 in this account if the account's interest rate is $20,000 in this account if the account's interest rate is

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