You want to get to this 50,000 once and for all and want to do it 2.5 years. You want to hit the number exactly on the head in that 2.5 years and still can contribute the same amount but this time you will do $1,100 monthly and will get the same 3.259% rate. How much will your friend need to give you as an initial deposit to hit the 50K in 2 ½ years?
You want to get to this 50,000 once and for all and want to do it...
You fell that you can retire, if you have the equivalent of $2 million of today’s purchasing power in your retirement account when you retire. Currently, you have $50,000 in this account and you anticipate that your investments will earn an average return of 6% per year (APR with monthly compounding). You expect to inflation to average 2% per year (also APR with monthly compounding). You want to retire exactly 30 years from today. You plan to start putting the...
If you want to have $87654 in the bank at the end of 10 years and you get a 3% interest rate per year. How much money do you need to deposit each month if a) monthly compounding? b) semi-annual compounding? c) quarterly compounding? d) daily compounding?
Assume that you want to buy a new car in 5 years, and that the price of the car will be $30,000. (Assume all cash flows occur at the end of the period throughout all of the Excel problems throughout our entire course.) Use Excel time value of money functions to solve the problems outlined below (one or more of these: PV, FV, RATE, NPER, PMT) (This question doesn't require a text box with written answers, but you need to...
You would like to start a business and have decided to move back into your parents’ basement as you save up the $50,000 you will need in starter costs. You procure a job that will allow you to contribute $550 into a savings account semi monthly (24 times a year). The account will be compounded at that same interval and will earn an annual interest rate of 3.259%. The instrument only allows you to collect at the end of complete...
If you want to have $87654 in the bank at the end of 10 years and you get a 3% interest rate per year. How much money do you need to deposit each month if a) monthly compounding? b) semi-annual compounding? a quarterly compounding? d) daily compounding?
Assume the same facts as in previous question except that you waited 10 years to get started. You still want to have the goal of $1,000,000 at retirement. The Formula for Sinking Fund factor is Find A given F (A/F) at 9 % for 240 payments is: i/[(1 + i)n - 1] Where; i = .09/12 and (1 + i)n = 6.00915152447 What amount must you deposit into your savings account monthly to get you to your goal of $1,000,000...
Suppose you are exactly 25 years old and you are planning to save for your retirement which will happen in 40 years. You plan to deposit equal amount at the beginning of each month in your retirement account with the first saving made today. Assume the retirement account pays you 6% p.a. compounded monthly. (a) If you would like to have $1,000,000 in your retirement account 40 years later when you are retired, how much will you have to deposit...
Lab Exercises D Your grandfather gave you $50,000. You want to set aside some of that money so you can withdraw $900/month for living expenses for the 4 years you attend university and still have $7,000 left at the end of the 4 years to pay for a trip after graduation. Your first withdrawal will be in one year when you start university. Assume you earn j12 4% the entire time. (a) How much of the $50,000 must you set...
You intend to create a college fund for your baby. If you can get an APR of 4.25% with monthly compounding and want the fund to have a value of 150,000 after 18 years, how much should you deposit monthly?
You want to be able to withdraw $50,000 each year for 20 years. Your account earns 10% 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?