Your employer offers a401(k)plan with a45%match, and you set a goal of retiring in 27 years with an amount of money which has the same buying power that1.4million dollars has today. If the account earns an annual interest rate of1.5%and the expected annual rate of inflation is1.6%, how much should YOU contribute each month to the401(k)? Round your answer to the nearest dollar.

Q: After consulting with your financial advisor, you figured that you need $9,000 per year for your…

A: Retirement fund planning is a strategic financial process aimed at ensuring a secure and comfortable…

Q: Your employer offers a 401(k) plan with a 25% match, and you set a goal of retiring in 25 years with…

A:

Q: Your employer offers a 401(k) plan with a 23% match, and you set a goal of retiring in 34 years with…

A: Time value of money concept is used to determine the present and future value of money using…

Q: Assume that you contribute $150 per month to a retirement plan for 20 years. Then you can increase…

A: Future value refers to the value an investment or cash flow is expected to grow to at a specific…

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A: Due to inflation prices increase but if the interest rate do not increase in the proportion than…

Q: When you retire, you plan to draw $50,000 per year from your retirement accounts, which will be…

A: Annuity is the no. of payments which are equal in size and made in equal interval of time. Person…

Q: Assume that you contribute $150 per month to a retirement plan for 20 years. Then you can increase…

A: Future value refers to the value an investment or cash flow is expected to grow to at a specific…

Q: ou want to come up with a plan to save for retirement. You will contribute to your retirement…

A: Due to compounding of interest large amount of interest is accumulated over the long period of time…

Q: Assume that you contribute $150 per month to a retirement plan for 20 years. Then you can increase…

A: Future value refers to the value an investment or cash flow is expected to grow to at a specific…

Q: An insurance company offers a retirement annuity that pays 100,000 per year for 15 years, gorwing at…

A: An Annuity is a stream of regular periodic payments made or received for a specified period of time…

Q: Suppose you wish to retire in 43 years on a fixed income equiva- lent to $66,000.00 in today's…

A: One of the important techniques that are used by the management in various areas such as a…

Q: Suppose you wish to retire in 41 years on a fixed income equiva- lent to $66,000.00 in today's…

A: Yield = 5.3% N = 41 Inflation rate = 2% Future Value Required = Present Equivalent * (1+Inflation…

Q: ou could save $12,000 per year ($1,000 per month) for 20 years towards your retirement and you could…

A: Future value of money is the amount of deposit made and amount of compounded interest accumulated…

Q: You are planning to make monthly deposits of £400 into a retirement account that pays 7 per cent…

A: The future Value accumulated after depositing a regular amount for the period compounding with the…

Q: Suppose that you’d like to retire in 40 years and you want to have a future value of $ 900000 in a…

A: APR: The annual interest rate that is charged to the borrowers is known as the annual percentage…

Q: You are planning to save for retirement over the next 30 years. To do this, you will invest K700 a…

A: Time Period30Stock Return 10%Bond Return6%Amount In Stock      K 700.00Amount In Bond   K  300.00

Q: Suppose you find an annuity that pays 8% annual interest, compounded annually. If you invest in this…

A: Annuity refers to the amount of installment that is paid regularly in a specific time gap and for a…

Q: Your employer offers a 401(k) plan with a 16% match, and you set a goal of retiring in 31 years with…

A: 401(k) is a type of retirement plan which allows investor to accumulate funds for retirement by…

Q: ) I will invest P15,000 per quarter for my retirement at 7.3% compounding quarterly for 10 years. I…

A: The future value of the annuity is the future worth of a cash flow series at a certain rate of…

Q: An investor requires an annual (year-end) income of $15,000 in perpetuity. Assuming a fixed rate of…

A: Information Provided: Annual income = $15,000 Interest rate = 4%   NOTE: As per our policy, we…

Q: How many years would it take save an adequate amount for retirement if he deposits $2,100 per month…

A: A study that proves that the 1value of money today is higher than the future value of money is term…

Q: After consulting with your financial advisor, you figured that you need $100,000 per year for your…

A: An annuity is a series of constant payment of a sum, yielding a certain rate of return.Information…

Q: Assume that you contribute $300 per month to a retirement plan for 15 years. Then you are able to…

A: An annuity is a way of fulfilling our future goals by investing a fixed amount for a fixed interval…

Q: Find the value of your retirement account after 20 years Value = $

A: The future value is the estimated value of an investment that accounts for compound interest or…

Q: suppose that you would like your retirement account, which has a 5% APR compounded monthly, to pay…

A: The value of a series of repeating payments at a certain date in the future is known as the future…

Q: Your employer offers a 401(k) plan with a 23% match, and you set a goal of retiring in 28 years with…

A: Purchasing power is often considered in terms of "real" or inflation-adjusted values. Real…

Q: You are planning to make monthly deposits of $300 into a retirement account that pays 8 percent…

A: Future value is the amount of money worth at a future date. This can be calculated based on the time…

Q: Your employer offers a 401(k) plan with a 31% match, and you set a goal of retiring in 29 years with…

A: Future value is the amount of deposit done and also amount of interest accumulated over the period…

Q: What is the maximum that you would be willing to loan your brother for a $100 IOU if he promises to…

A: Since  Future value = Present value ×(1+Periodic Interest rate)^n Where, N= Number of periods = 1…

Q: company offers you employment for the next 30 years until retirement but will not pay you a pension…

A: In this we have to calculate the monthly deposit upto retirements and than how much can be withdrawn…

Q: Future Value of Multiple Annuities Assume that you contribute $110 per month to a retirement plan…

A: We need to use future value of ordinary annuity formula to calculate value of of your retirement…

Q: Suppose you are paid $2400 per month and your employer's 401(k) matches your contributions by 50% up…

A: The 401k contributions are the contribution made by the employee and employer for the retirement of…

Q: You are planning to make monthly deposits of £400 into a retirement account that pays 7 per cent…

A: Solution:-When an equal amount is deposited each period at end of period, it is called ordinary…

Q: You plan to place $1,200 per year into a Roth IRA. You expect to earn 6% APR and you will place this…

A: Given, The yearly deposit is $1,200 Rate is 6% Term of investment is 35

Q: loyer offers a 401(k) plan with a 15% match, and you set a goal of retiring in 35 years with an…

A: The amount deposited grow with interest being accumulated over the period of time due to compounding…