ZuoTi.Pro
Question

Georgia McBeal is trying to save for her retirement. She believes she can earn 10% on...

Georgia McBeal is trying to save for her retirement. She believes she can earn 10% on average each year on her retirement fund. Assume that at the beginning of each of the next 40 years, Georgia will allocate x pounds to her retirement fund. If at the beginning of a year Georgia has y pounds in her fund, by the end of year, it will grow to 1.1y pounds. How much should Georgia allocate to her retirement fund each year to ensure that she will have £1 million at the end of 40 years?

business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

SEE IMAGE. ANY DOUBTS, FEEL FREE TO ASK.HAPPY TO HELP YOU. THUMBS UP PLEASE. THANK YOU.

Home nert Page Layout Formulas Data Review View dd-Ins Cut Σ AutoSum ー E ゴWrap Text aCopy в 1 프 . Ej-., Δ. : rーー 逻锂函Merge & Center. $, % , 弼,8 C Paste Conditional Format CeInsert Delete Format Formatting as Table Styles2 Clear Sort &Find & Format Painter Clipboard OC55 NX Font Alignment Number Styles Cells Edting NY NZ OA OB OC OD OE OF OG он ΟΙ Oj 45 46 47 48 49 50 51 52 53 54 EXCEL ANNUITY DUE CASE FV YEARS RATE PMT 1000000 40 10% $ 2,054.01 EXCEL-PMT(1096,40,,-1000000,1) NSWER: X $2,054.01 OR TABLE 56 57 58 59 60 61 62 63 11 1 トーCALCULATOR ( LOAN OPTIONS | pv, fv, annuity i CAP STRU VALUE FV-X * FVIFAD @ 10%, 40 YEARS FVIFAD FVIFAD FVI FAD = FVIFAD FVIFAD- FUTURE VALUE ANNUITY DUE 1000000X486.8519 FVIFAX (1+r) NSWER 2054.01 FVI FA @ 10%, 40 YEARS X (1+0.10) 442.5926 X (1.1) 486.8519 BOX DILUTION DOLLAR CoST AVGMORTGAGE EXPO Sheeti Sheet2 Shel 福 130% rences: x261 11:23 03-01-2019

0 0
Add a comment
Know the answer?
Add Answer to:
Georgia McBeal is trying to save for her retirement. She believes she can earn 10% on...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • TVM solver calculator:) (e) Trudy is planning for her retirement from her job as a chemist. When she retires, she...

    TVM solver calculator:) (e) Trudy is planning for her retirement from her job as a chemist. When she retires, she would like to receive $300 at the end of each month for 15 years from a retirement income fund (RIF) that earns 5%/a, compounded monthly. How much money would she need to establish the RIF at the beginning of her retirement? (e) Trudy is planning for her retirement from her job as a chemist. When she retires, she would like...

  • An individual is currently 30 years old and she is planning her financial needs upon retirement. She will retire at age...

    An individual is currently 30 years old and she is planning her financial needs upon retirement. She will retire at age 65 (exactly 35 years from now) and she plans on funding 20 years of retirement with her investments. Ignore any social security payments and ignore any taxes. She made $106,000 last year and she estimates she will need 75% of her current income in today's dollars to live on when she retires. She believes that inflation will average 3...

  • An individual is currently 30 years old and she is planning her financial needs upon retirement....

    An individual is currently 30 years old and she is planning her financial needs upon retirement. She will retire at age 65 (exactly 35 years from now) and she plans on funding 20 years of retirement with her investments. Ignore any social security payments and ignore any taxes. She made $131,000 last year and she estimates she will need 75% of her current income in today's dollars to live on when she retires. She believes that inflation will average 3...

  • 2. Your sister turned 25 today, and she is planning to save $3,500 per year for...

    2. Your sister turned 25 today, and she is planning to save $3,500 per year for retirement, with the first deposit to be made one year from today. She will invest in a mutual fund that's expected to provide a return of 7% per year. She plans to retire 40 years from today, when she turns 65, and she expects to live for 25 years after retirement, to age 90. Under these assumptions, how much can she spend each year...

  • Robin is planning for her retirement. She is currently 37 years old and plans to retire...

    Robin is planning for her retirement. She is currently 37 years old and plans to retire at age 62 and live until age 97. Robin currently earns $120,000 per year and anticipates needing 80% of her income during retirement. She anticipates Social Security will provide her with $15,000 per year at age 62, leaving her with required savings to provide $81,000 ($120,000 x 0.80 - $15,000) annually during retirement. She is willing to take some investment risk. Her pre-retirement portfolio...

  • An engineer expects to earn a $70,000 salary after she graduates. She anticipates that her salary...

    An engineer expects to earn a $70,000 salary after she graduates. She anticipates that her salary will increase by an average of 4% each year until she retires 50 years later. If she deposits 10% of her salary into a retirement account at the end of each year, and the account earns 6% annual interest, how much will she have saved on the day she retires?

  • Use the following information to answer each question Allison wants to save for retirement. She is...

    Use the following information to answer each question Allison wants to save for retirement. She is 20 and wants to retire in 40 years. She is considering two options and expects to earn an 8% annual return under each option. Option 1: She is considering contributing $6,000 per year to an IRA for 10 years at which time she figures she will be tired of self-deprivation save no more. The invested funds, however, will continue to grow until she retires....

  • A friend of yours currently has $75000 in her retirement account. If she can earn 3.7%...

    A friend of yours currently has $75000 in her retirement account. If she can earn 3.7% APY, and would like to retire 32.3333 years from today, and begin getting $4300 per month forever after that, with the first payment 1 month after she retires, how much does she need to save per month until she retires to achieve her goal? (Rounded to the nearest dollar.)

  • June wants to have $2,000,000 for her retirement in 30 years. How much should she save...

    June wants to have $2,000,000 for her retirement in 30 years. How much should she save annually if she thinks she can earn 10% on her investments?

  • Joey’s sister turned 35 today, and she is planning to save $50,000 per year for retirement,...

    Joey’s sister turned 35 today, and she is planning to save $50,000 per year for retirement, with the first deposit to be made one year from today. She will invest in a mutual fund that's expected to provide a return of 7.5% per year. She plans to retire 30 years from today, when she turns 65, and she expects to live for 25 years after retirement, to age 90. Under these assumptions, how much can she spend each year after...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT