Since he was 23 years old, Ben has been depositing $200 at the end of each month into a tax-free retirement account earning interest at the rate of 5.5%/year compounded monthly. Larry, who is the same age as Ben, decided to open a tax-free retirement account 5 years after Ben opened his. If Larry's account earns interest at the same rate as Ben's, determine how much Larry should deposit each month into his account so that both men will have the same amount of money in their accounts at age 65. (Round your answer to the nearest cent.) $
Calculating Future Value for Ben,
using TVM Calculation,
FV = [PV = 0, PMT = 200, N = 504, I = 0.055/12]
FV = $393,660.90
Calculating Monthly Deposit for Larry,
Using TVM calculation,
PMT = [PV = 0, FV = 393,660.90, I = 0.055/12, N = 444]
PMT = $272.68
Since he was 23 years old, Ben has been depositing $200 at the end of each...
(2 pts) Larry would like to retire in 25 years. He currently has $150,000 in his retirement account and is planning on depositing an additional $800 each month in his retirement account. If Larry can earn an average APR of 7% per year compounded monthly, how much money will be in his retirement account after 25 years? 3)
3) (2 pts) Larry would like to retire in 20 years. He currently has $150,000 in his retirement account and is planning on depositing an additional $800 each month in his retirement account. If Larry can earn an average APR of 7% per year compounded monthly, how much money will be in his retirement account after 20 years?
9. Anthony invested a sum of money 4 yr ago in a savings account that has since paid interest at the rate of 7%/year compounded quarterly. His investment is now worth $22,438.81. How much did he originally invest? Please round the answer to the nearest cent. 10. Joe plans to deposit $300 at the end of each month into a bank account for a period of 2 yr, after which he plans to deposit S500 at the end of each month into the same...
An individual is 49 years old. At the end of each month, he deposits $350 in a retirement account that pays 5.37% interest compounded monthly. (a) After 9 years, what is the value of the account? (b) If no further deposits or withdrawals are made to the account, what is the value of the account when the individual reaches age 65?
1) (3 pts) Bob would like to have a total savings of $30,000 in 6 years to use as a down payment on a future house purchase. He has no money saved up now, but plans on depositing $350 per month at the end of every month to save for this goal. What is the periodic interest rate Bob must earn to reach his goal? What is the Annual Percentage rate? 1 Periodic *.ㅡ I Nominal (APR)- % 2) (3...
If Jackson deposits $100 at the end of each month in a savings account earning interest at a rate of 3%/year compounded monthly, how much will he have on deposit in his savings account at the end of 6 years, assuming he makes no withdrawals during that period? (Round your answer to the nearest cent.)
17. SAVINGS ACCOUNTS Linda has joined a Christmas Fund Club at her bank. At the end of every month, December through October inclusive, she will make a deposit of $40! in her fund. If the money earns interest at the rate of 2.5%/year compounded monthly, how much will she have in her account on December 1 of the following year? 21. INVESTMENT ANALYSIS Luis has $150,000 in his retirement account at his present company. Because he is assuming a position...
When Joe and Sarah graduate from college, each expects to work a total of 45 years. Joe begins saving for retirement immediately. He plans to deposit $550 at the end of each quarter into an account paying 7.1% interest, compounded quarterly, for 13 years. He will then leave his balance in the account, oaming the same interest rate, but make no further deposits for 32 years. Sarah plans to save nothing during the first 13 years and then begin depositing...
Stanley Glass plans to deposit $3,500 at the end of each year for 25 years into his Prudential Retirement account, which earns 11% interest. How much will Stanley Glass accumulate in his retirement account, when he retires? Merck & Co., Inc. needs $24,034,142 for a new research and development facility to be constructed 10 years from now. The company currently has $5,000,000 to invest in such capital expenditures. At what rate of interest must it invest the $5,000,000 to fund...
(3 pts) Sue has $30,000 to use as a down payment on a house and can afford to pay $1000 per month for a mortgage. If the interest rate on a 15-year mortgage is 4.2% (this is an APR) compounded monthly. What is the highest price house she can afford using a 15-year mortgage? 2) s. (2 pts) Larry would like to retire in 20 years. He currently has $300,000 in his retirement account and is planning on depositing an...