You want to receive 5,000 per month in retirement and you expect to need the income...
You want to receive 5,000 per month in retirement and you expect to need the income for 25 years. How much do you need to have in your account at retirement, assume that money in the account earn 6% compounded month?
Homework Answers
Amount payment = $5,000
Period = 25 years or 300 months
Annual interest rate = 6.00%
Monthly interest rate = 0.50%
Present value of payments = $5,000/1.005 + $5,000/1.005^2 + … +
$5,000/1.005^299 + $5,000/1.005^300
Present value of payments = $5,000 * (1 - (1/1.005)^300) /
0.005
Present value of payments = $5,000 * 155.206864
Present value of payments = $776,034.32
So, you need to have $776,034.32 or $776,034 in your account at retirement.
Add Answer to:
You want to receive 5,000 per month in retirement and you expect
to need the income...
2. You want to receive 5,000 per month in retirement. If you can earn 0.75% per...
2. You want to receive 5,000 per month in retirement. If you can earn 0.75% per month and you expect to need the income for 25 years, how much do you need to have in your account at retirement? Dr. Alya Al Fori 6F-27
You want to be able to withdraw $2500 per month during your retirement. You want to...
You want to be able to withdraw $2500 per month during your retirement. You want to be able to do this for 25 years, and your account will earn 8% interest compounded monthly. How much do you need to have in your account at the beginning of retirement? How much total money will you pull out of the account during the 25 years? How much of that money is interest?
You want $6,000 per month in your retirement. You expect to retire 40 years from today....
You want $6,000 per month in your retirement. You expect to retire 40 years from today. At the time you retire, you want the payments to be at the beginning of the month and want them to last 30 years or 360 months. You expect an annual interest rate of 5% during retirement. You need to save to obtain this retirement. How much per month at the end of each month do you need to save for the next 480...
1. You want $6,000 per month in your retirement. You expect to retire 40 years from...
1. You want $6,000 per month in your retirement. You expect to retire 40 years from today. At the time you retire, you want the payments to be at the beginning of the month and want them to last 30 years or 360 months. You expect an annual interest rate of 5% during retirement. You need to save to obtain this retirement. How much per month at the end of each month do you need to save for the next...
3. You are starting to plan for your retirement and want to determine the optimal type...
3. You are starting to plan for your retirement and want to determine the optimal type of retirement account to establish in light of different tax treatments on the accounts. Suppose that you are 30 years from retirement and that your investments will be in government and corporate bonds. You expect that you will be able to afford pre-tax contributions of $5,000 per year for the next ten years. After that, you expect to have gotten promoted at work, allowing...
Suppose you are exactly 25 years old and you are planning to save for your retirement...
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...
For your retirement planning, you are currently depositing $350 per month into an account that earns...
For your retirement planning, you are currently depositing $350 per month into an account that earns an 8% return, compounded monthly. In 12 years, you expect to increase that deposit by $250 per month (to a total of $600 per month). You plan to retire in 40 years. After you retire, you will move the money into a safe account that earns a guaranteed 3.5% per year. How much will you have when you retire? If you expect to live...
How much will Jimmy need to save per month to pay for Jane and his retirement
How much will Jimmy need to save per month to pay for Jane and his retirement income for 25 years assuming that Jimmy can earn 8.0% per year, compounding monthly, on the invested funds. Assume Jimmy and Jane stop saving in 40 years when they reach 65, and funds are then held in a savings account earning zero. Further, assume that the 401k is NOT used for income, as it will be needed for a vacation home transition. (Hint: Use...
You want to be able to withdraw $40,000 from your account each year for 30 years...
You want to be able to withdraw $40,000 from your account each year for 30 years after you retire. If you expect to retire in 25 years and your account earns 5.6% interest while saving for retirement and 4.1% interest while retired: Round your answers to the nearest cent as needed. a) How much will you need to have when you retire? b) How much will you need to deposit each month until retirement to achieve your retirement goals? c)...
You are trying to decide how much money you will need at retirement. You expect to...
You are trying to decide how much money you will need at retirement. You expect to retire at age 65. You hope to travel extensively while you are healthy enough. To finance your travels (and cover your basic living expenses) you think you will need income of $241,000 per year (at the end of each year). You will make your first withdrawal on your 66th birthday. You expect to stay healthy enough for travel for the first 19 years after...
2. You want to receive 5,000 per month in retirement. If you can earn 0.75% per month and you expect to need the income for 25 years, how much do you need to have in your account at retirement? Dr. Alya Al Fori 6F-27
You want to be able to withdraw $40,000 from your account each year for 30 years after you retire. If you expect to retire in 25 years and your account earns 5.6% interest while saving for retirement and 4.1% interest while retired: Round your answers to the nearest cent as needed. a) How much will you need to have when you retire? b) How much will you need to deposit each month until retirement to achieve your retirement goals? c)...
Most questions answered within 3 hours.
-
**86 at 40 not 88. please show how got Tr in calculations thank
you
2) The...
asked 1 minute from now -
McGlaun Company pays its employees every two weeks. The firm
last paid its employees on September...
asked 12 minutes ago -
You have been gifted a Mogwai as a pet and decide to do a little
online...
asked 16 minutes ago -
given the standard of 200 mg/dl and the absorbance of that
standard is 0.640. What is...
asked 19 minutes ago -
Exercise 8-51 Algo
An accounting professor is notorious for being stingy in giving
out good letter...
asked 27 minutes ago -
month
total distribution cost
level of activity (unit produced)
july
230.000
3500
august
250.000
3750
september...
asked 29 minutes ago -
A smoke detector system uses two devices, A and B. If smoke is
present, the probability...
asked 1 hour ago -
Your division head has assigned another important project to you
and your team. This project is...
asked 41 minutes ago -
Under normal use conditions, the Mean Time To Failure of a
heating coil can be modeled...
asked 1 hour ago -
Consider the probability that fewer than 34 out of 116 CDs will
be defective. Assume the...
asked 56 minutes ago -
4J Manufacturing Company uses a job order cost accounting system
and keeps perpetual inventory records. Prepare...
asked 46 minutes ago -
Please write code in C++
using recursive function
Write a program that computes the sequence of...
asked 44 minutes ago