The interest rate per month is :
where;
r denote nominal annual interest rate
m denote months
Now we calculate uniform series compound amount factor. before that we calculate total numbers of months(n).
Therefore,the value of amount after 40 years is $797,000 (option c).
2) An individual contributes $400 per month to a 401(k) retirement account. The account earns interest...
In 2019, Nitai (age 40) contributes 8 percent of his $187,000 annual salary to a Roth 401(k) account sponsored by his employer, AY Inc. AY Inc. matches employee contributions to the employee’s traditional 401(k) account dollar-for-dollar up to 8 percent of the employee’s salary. Nitai expects to earn a 7 percent before-tax rate of return. Assume he leaves the contributions in the Roth 401(k) and traditional 401(k) accounts until he retires in 30 years and that he makes no additional...
0 Required information The following information applies to the questions displayed below In 2018, Nina contributes 8 percent of her $83,000 annual salary to her 401(k) account. She expects to earn a 10 percent before-tax rate of return. Assuming she leaves this (and any employer contributions) in the account until she retires in 20 years, what is Nina's after-tax accumulation from her 2018 contributions to her 401(k) account? (Use Table 3. Table 4 (Round your intermediate calculations and final answers...
If you put $5,790.42 into your 401(K) account that earns 7.5% interest annually, how much will be in your account after 45 years?
In 2014, Nitai contributes 10 percent of his $102,000 annual salary to a Roth 401 (k) account sponsored by his employer, AY Inc. AY Inc. matches employee contributions dollar for dollar up to 10 percent of the employee's salary to the employee's traditional 401(k) account. Nitai expects to earn a 8 percent before-tax rate of return Assuming he leaves his contributions in the Roth 401 (k) and traditional 401 (k) accounts until he retires in 25 years, what are Nitai's...
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...
$5,000 is deposited today into a bank account. The account earns 3.2% per annum compounded half yearly for the first 7 years, then 8.2% per annum compounded quarterly thereafter. Assuming no further deposits or withdrawals are made, (d) Calculate the account balance 10 years from today. A loan of $100,000 is made today. The borrower will make equal repayments of $3800.75 per month with the first payment being exactly one month from today. The interest being charged on this loan...
1. It cost $10,000 to train a new employee. You need to determine an equivalent cost of training. For a group of employees who will serve 6 years, define this as the amount that could be paid at the end of each year of six (6) and equivalent to a 10% compound interest of $10,000 at the end of the first year. This amount is most nearly to: a. A = $2,500 b. A = $2,296 c. A = $2,196...
If you deposit $250 each month into an individual retirement account (IRA) earning 5% interest, how much will you have in the account after 30 years?
If you deposit $250 each month into an individual retirement account (IRA) earning 6% APR interest, how much will you have in the account after 25 years?
If you deposit $350 each month into an individual retirement account (RA) earning 6% APR interest, how much will you have in the account after 25 years? Answer: