You save $800 a year into a 401(k) account that you invest in a mutual fund earning 9% per year.  You plan to retire in 25 years. How much money will you have in your account at retirement?

Q: Through your career, you have saved-up $1,150,000. You are now ready to retire. You discuss your…

A: Present Value = pv = $1,150,000Annuity = pmt = $68,000Time = nper = 25 Years

Q: suppose you decide to invest 5,000 to support your retirement plans, in 30 year time. A private fund…

A: Compound interest is a financial concept where the interest earned or charged on an investment or…

Q: Use the savings plan formula to answer the following question. At age 45, you start saving for…

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

Q: You are planning to invest $6,000 in an account earning 10% per year for retirement. a. If you put…

A: Solution:- When an amount is deposited somewhere, it earns interest on it. The amount initially…

Q: You are saving for retirement. To live comfortably, you decide you will need to save $1,400,000 by…

A: Future Value = fv = $1,400,000Time = t = 48Interest Rate = r = 12%

Q: 4. You want to have a retirement fund of $200,000 available when you retire. You invest in an IRA to…

A: The sum that remains after future cash amounts have been discounted to a later date is most likely…

Q: Your friend offers to pay you an annuity of $2,500 at the end of each year for 3 years in return for…

A: Annual Payment (P) = $2,500Interest rate (r) = 5.5% or 0.055Number of years (n) = 3

Q: ou are saving for retirement in 30 years.  You contribute $5,500 a year to a pension plan for 20…

A: Annuity refers to series of equalized payments that are made either at start or end of specific…

Q: bjective is to save $500,000 for preparing your retirement, assuming 30 years from now. If you…

A: Future value=$500000Period=n=30 yearsInterest rate=r=10%

Q: If you want to retire at 65 years old and your 43 years old today. if you invest $600 every year…

A: Retirement planning is an important concept and helps in measuring the investment options that an…

Q: re trying to decide how much to say for retirement assume you plan to save 10,000 per year and will…

A: There is need of planning for retirement and if done properly on time can have good retirement life.

Q: How much interest did you gain if you invested in a retirement plan with a rate of 2.5% over 42…

A: First we will compute the future value of retirement corpus with monthly deposit. And then we will…

Q: Your parents would like to establish a trust fund that would pay annual payments to you and your…

A: In this question we require to calculate the present value of perpetuity as we will receive $500000…

Q: the next year and you ar, how much more will you have when you retire if you wait one year to make…

A: Future Value: The future value is the value of annuity or the sum lump amount after a certain period…

Q: You are planning to save for retirement over the next 30 years. To do this, you will invest $1,500 a…

A: Retirement planning is a method of investing to get returns over no income period. This is an…

Q: Use Excel to solve the following problem. Assume that you are 39 years old planning for your future…

A: Let's say we save an amount M every month. Interest rate = 6% per annumHere, a period is a monthR =…

Q: If you invest $10,000 in a savings account that earns 5% interest per year, how much will you have…

A: Investment amount = $10,000Interest rate = 5%Period = 10 years

Q: You have an opportunity to purchase a perpetuity that pays $74 per year. What is the most you should…

A: Perpetuity is a stream of identical cash flows with no end. It is a type of payment that is both…

Q: You want to retire in 30 years with $2,500,000 in your retirement account, how much do you need to…

A: Future value required (FV) = $ 2,500,000 Interest rate (r) = 8% Number of annual payments (n) = 30

Q: Baghiben

A: The objective of this question is to calculate the future value of an annuity due. An annuity due is…

Q: You are trying to decide how much to save for retirement. Assume you plan to save $6,000 per year…

A: The objective of the question is to calculate the retirement savings based on different scenarios.…

Q: Retirement Investment Advisors, Incorporated, has just offered you an annual Interest rate of 4.9…

A: Future value refers to the value of cash flows or annuity at defined future date. It can be…

Q: retire in 27 years. When you do, you would like to have the purchasing power of $114,071 today,…

A: The present value of annuity due refers to the current value of a series of future payments. The…

Q: PART C.) In planning for your retirement, you expect to save $5,000 in year 1, $6,000 in year 2, and…

A: A concept that implies the future worth of the money is lower than its current value due to several…

Q: Your father is considering purchasing an annuity that pays $5,000 at the beginning of each year for…

A: The objective of the question is to find out the present value of an annuity that pays $5,000 at the…

Q: How much money will you have when you retire at the end of 19 years, if the interest rate is 7% per…

A: Future Value: It is the future worth of the annual cash flows compounded over a period of time. The…

Q: You are planning to save for retirement over the next 20 years. To do this, you will invest $900 a…

A: We will apply the TVM (time value of money) concept here.Value or worth of money changes with…

Q: our uncle is about to retire, and he wants to buy an annuity that will provide him with $7,000 of…

A: Income per Year is $7,000Time Period is 25 YearsInterest rate is 5.25%Annuity Type is Annuity dueTo…

Q: By the end of this year you would be 35 years old and you want to plan for your retirement. You wish…

A: Retirement account interest = 7% Period of retirement account = 30 years Annual coupon = 6% Annuity…

Q: You begin saving for your retirement by investing $500, matched by your employer with $300 at the…

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

Q: You just inherited some money, and you decide to put $70,000 in an account that pays 3.25% interest,…

A: Given:P = $70,000r = 3.25% or 0.0325 in decimaln = 10 years

Q: You are saving for retirement. To live comfortably, you decide you will need to save $4 million by…

A: Future Value = fv = $4 millionInterest Rate = r = 3%Time = t = 65 - 34 = 31

Q: Creating a retirement fund Personal Finance Problem To supplement your retirement, you estimate that…

A: The concept of time value of money will be used here. As per the concept of time value of money the…

Q: You are saving for retirement. To live comfortably, you decide you will need to save $3 Million by…

A: Annual deposit is calculated using following equation Annual deposit = FV×i[(1+i)n-1]×(1+i) Where,…

Q: You save $400 a year into a 401(k) account that you invest in a mutual fund earning 10% per year.…

A: Amount saved per year is $400 Interest rate is 10% per year Time period is 30 years.   To Find:…

Q: How much money does Suzie need to have in her retirement savings account today if she wishes to…

A: Payment = p = $25,000Time = t = 3 YearsAverage Rate of Return = r = 13%

Q: You are trying to decide how much to save for retirement. Assume you plan to save $5,000 per year…

A: Time value of money is a financial concept which is used to analyze various investments and…

Q: Next 14 years: In the 6th year, you save $2100 and decrease your savings by $100 in each following…

A: Here we can use the concept of time value of money to solve the question. The concept of time value…