Carla Lopez deposits $4,200 a year into her retirement account. If these funds have an average earning of 6 percent over the 40 years until her retirement, what will be the value of her retirement account? Use Exhibit 1-B. (Round time value factor to 3 decimal places and final answer to the nearest whole number.)
Annual Deposits = $ 4200, Average Interest Rate = 6% and Deposit Tenure = 40 years
Therefore, Future Value of Deposits = 4200 x (1.06)^(39) + 4200 x (1.06)^(38) +...........+ 4200 = 4200 x [{(1.06)^(40)-1}/{(1.06)-1}] = $ 650000.2556 ~ $ 650000.256
Carla Lopez deposits $4,200 a year into her retirement account. If these funds have an average...
Problem 1-9 (LO1.3) Carla Lopez deposits $1,600 a year into her retirement account. If these funds have an average earnings of 6 percent over the 40 years until her retirement, what will be the value of her retirement account? Use Exhibit 1-B. (Round your FV factor to 3 decimal places and final answer to the nearest whole dollar.) Value of retirement account
Calculate the future value of a retirement account in which you deposit $3,000 a year for 40 years with an annual interest rate of 8 percent. Use Exhibit 1-B. (Round time value factor to 3 decimal places and final answer to the nearest whole number.)
Jenny Lopez estimates that as a result of completing her master’s degree, she will earn an additional $10,000 a year for the next 30 years. (a) What would be the total amount of these additional earnings? (b) What would be the future value of these additional earnings based on an annual interest rate of 8 percent? Use Exhibit 1-B. (Round time value factor to 3 decimal places and final answer to the nearest whole number.)
Return to que 7. Jenny Lopez estimates that as a result of completing her master's degree, she will earn an additional $8,000 a year for the next 40 years (a) What would be the total amount of these additional earnings? 10 points Answer is complete but not entirely correct. Additional earnings s 160,000 (b) What would be the future value of these additional earnings based on an annual interest rate of 6 percent? Use Exhibit 1-8. (Round time value factor...
If a person spends $20 a week on coffee (assume $1,000 a year), what would be the future value of that amount over 7 years if the funds were deposited in an account earning 3 percent? Use Exhibit 1-B. (Round time value factor to 3 decimal places and final answer to 2 decimal places.)
If a person spends $20 a week on coffee (assume $1,000 a year), what would be the future value of that amount over 15 years if the funds were deposited in an account earning 2 percent? Use Exhibit 1-B. (Round time value factor to 3 decimal places and final answer to 2 decimal places.) future value=
33.33 A financial company advertises on television that they will pay you $75,000 now in exchange for annual payments of $12,500 that you are expected to receive for a legal settlement over the next 12 years. You estimate the time value of money at 10 percent. Would you except this offer? 33.32 If a person spends $15 a week on coffee (assume $750 a year), what would be the future value of that amount over 9 years if the funds...
You deposit $6000 each year into your retirement account, starting in one year. If these funds earn an average of 7% per year over the 29 years until your retirement, what will be the value of your retirement account upon retirement?
2. George deposits $5500 in her retirement account every year. If her account pays an average of 6% interest and she makes 35 deposits before she retires, how much money can she withdraw in 20 equal annual payments beginning one year later her last deposit?
Ruby is 25 and has a good job at a biotechnology company. She currently has $9,400 in an IRA, an important part of her retirement nest egg. She believes her IRA will grow at an annual rate of 8 percent, and she plans to leave it untouched until she retires at age 65. Ruby estimates that she will need $875,000 in her total retirement nest egg by the time she is 65 in order to have retirement income of $20,000...