In 40 years, when you retire, you dream about having $2,000,000 to travel around the world....

Question

Question

Answer 1

Answer #1

Monthly payments are calculated using the PMT function:-

=PMT(rate,nper,pv,fv)

=PMT(8%/12,40*12,0,2000000)

=573

Answer 2

Similar Homework Help Questions

In 40 years, when you retire, you dream about having $2,000,000 to travel around the world....

In 40 years, when you retire, you dream about having $2,000,000 to travel around the world. You open an investment account that promises to pay 12% per year compounded monthly. How much money must you deposit each month, starting this month and ending in 40 years, so you can finance your dream?
You want to withdraw $11,200 per month for 30 years when you retire, then you expect...

You want to withdraw $11,200 per month for 30 years when you retire, then you expect to pass on. You plan to retire in 40 years, and expect to earn a return of 11.2 percent until then. You will make monthly deposits to fund your retirement account. Immediately after you make your last deposit, you plan to withdraw $80,000 to take an around the world trip. You also wish to leave your grandchildren $1,200,000 when you pass on. You will...
To fund your dream around-the-world vacation, you plan to save $1,250 per year for the next...

To fund your dream around-the-world vacation, you plan to save $1,250 per year for the next 12 years starting one year from now. If you can earn an interest rate of 5.71 percent, how much will you have saved for your vacation? Multiple Choice o $18,431.38 o $20,018.86 o $19,832.35 o О $20,73382 $20,733.82 o $19,582.60 The value of the following cash flows four years from today is $8,487.54. The interest rate is 5.6 percent. What is the value of...

You want to have $2,000,000 saved by the time you retire which is in 50 years....

You want to have $2,000,000 saved by the time you retire which is in 50 years. You can invest your money in a portfolio that is estimated to earn 10% per year. You have no money saved today but would like to start investing starting at the end of this month. How much do you need to save each month?
Stacy and Michael plan to retire in 40 years. How much do they need to deposit...

Stacy and Michael plan to retire in 40 years. How much do they need to deposit each month in a sinking fund in order to have $750,000 when they retire if they earn 4.8% compounded monthly. Please show work. Thanks you
You decided to save money for a travel to Barcelona in two years. You decided to...

You decided to save money for a travel to Barcelona in two years. You decided to open a savings account and make equal monthly deposits for the next two years. You think that you need to save $5,000. You checked a few banks to find out the best savings account and identified one, the APR of which is 3.6%. You will receive interests every month and you are going to keep those received interests in your savings account. How much...

You wish to retire in 40 years, at which time you want to have accumulated enough...

You wish to retire in 40 years, at which time you want to have accumulated enough money to receive a monthly annuity of $12,000 for 25 years after retirement. During the period before retirement you can earn 9% compounded annually, while after retirement you can earn 10% on your money. What annual contributions to this retirement fund will allow you to receive the $12,000 monthly annuity?
5. Suppose you want to retire 40 years from now and have 2 million in savings....

5. Suppose you want to retire 40 years from now and have 2 million in savings. Your saving account has a nominal interest of 5% compounded monthly. How much money do you have to add to your saving account monthly? (3 pts)
You plan to work for 40 years and then retire using a 25-year annuity. You want...

You plan to work for 40 years and then retire using a 25-year annuity. You want to arrange a retirement income of $4700 per month. You have access to an account that pays an APR of 4.8% compounded monthly. What size nest egg do you need to achieve the desired monthly yield? (Round your answer to the nearest cent.)

You plan to work for 40 years and then retire using a 25-year annuity. You want...

You plan to work for 40 years and then retire using a 25-year annuity. You want to arrange a retirement income of $4000 per month. You have access to an account that pays an APR of 7.2% compounded monthly. This requires a nest egg of $555,873.10. What monthly deposits are required to achieve the desired monthly yield at retirement? (Round your answer to the nearest cent.) eBook