ZuoTi.Pro
Question

Bill has decided to begin investing for retirement. He is going to put his tax raturn...

Bill has decided to begin investing for retirement. He is going to put his tax raturn of $7,328 into the account today and then set up monthly contributions from his paycheck in the amount of $385. The money will go into an account that earns 7.7 percent annual interest (compounded monthly). How much will he have in the account after 20 years? Show using excell cell functions

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

Homework Answers

Answer #1

Nper = 20*12 = 240

Rate = 7.7%/12

PV = -7328

PMT = -385

Solve for FV

=FV(7.7%/12, 240, -385, -7328) = $252516.23

0 0
Add a comment
Know the answer?
Add Answer to:
Bill has decided to begin investing for retirement. He is going to put his tax raturn...
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

  • Cindy and Mike managed to save $522,000 in their retirement account, which earns 4.1 percent annual...

    Cindy and Mike managed to save $522,000 in their retirement account, which earns 4.1 percent annual interest. They plan to live on this money and will begin withdrawing $6,000 per month out of the account until the money in the account is gone. How long, in months, will their money last? (Show your answer to two decimals, e.g., 12.34; fractional months are okay) Please show using Excel functions. Nper Rate PV FV PMT Nper Rate PV FV PMT

  • Mr. Moore is 35 years old today and is beginning to plan for his retirement. He...

    Mr. Moore is 35 years old today and is beginning to plan for his retirement. He wants to set aside an equal amount at the end of each of the next 25 years so that he can retire at age 60. He expects to live to the maximum age of 80 and wants to be able to withdraw $25,000 per year from the account on his 61st through 80th birthdays. The account is expected to earn 10 percent per annum...

  • You just decided to begin saving for retirement. You will make deposits of $1,000 per month...

    You just decided to begin saving for retirement. You will make deposits of $1,000 per month into a retirement account that earns 8.00% p.a. The first deposit is made today and the last deposit will be made when you retire exactly 30 years from today. You will begin to make withdrawals from the account the first month after you retire. If you plan to live an addition 25 years and leave $800,000 to your heirs, you will be able to...

  • Luis has $150,000 in his retirement account at his present company

    Luis has $150,000 in his retirement account at his present company. Because he is assuming a position with another company, Luis is planning to "roll over" his assets to a new account. Luis also plans to put $3000/quarter into the new account until his retirement 20 years from now. If the new account earns interest at the rate of 8%/year compounded quarterly, how much will Luis have in his account at the time of his retirement?

  • Adam wants to prepare in order to enter retirement in 30 years. He expects that he will be in retirement for 25...

    Adam wants to prepare in order to enter retirement in 30 years. He expects that he will be in retirement for 25 years and he wants to have a monthly income of $2,500 in order to support his lifestyle. At the end of that period he wants to have $20,000 left to take care of end of life expenses. a) How much will he need to have at the time of retirement to accomplish these goals if he car earn...

  • Bonnie has decided to begin a retirement savings program where she will contribute to an account...

    Bonnie has decided to begin a retirement savings program where she will contribute to an account that wil accumulate tax tree throughout her working demount of S00000 when she thosheruereremanje . She expects to retire in exactly 6 years from Isday and her goal is to have In order to meet h ow she will begin in MONTHLY contr a el con devoted to the retirement goal Contr monthly amounts into her retirement count for the next years. What minimum...

  • Edward has saved $225,000 for retirement, and his account earns 6% interest compounded monthly. How much...

    Edward has saved $225,000 for retirement, and his account earns 6% interest compounded monthly. How much can he take out of his account each month, if he wants to be able to take withdrawals for 15 years?

  • Question 23 1 pts Luis has $160,000 in his retirement account at his present company. Because...

    Question 23 1 pts Luis has $160,000 in his retirement account at his present company. Because he is assuming a position with another company, Luis is planning to roll over his assets to a new account. Luis also plans to put $4,000/quarter into the new account until his retirement 21 yr from now. If the account earns interest at the rate of 5%/year compounded quarterly, how much will Luis have in his account at the time of his retirement? Please...

  • 2. Mike currently 48, has $20,000 saved for retirement. He is currently saving $500 at the...

    2. Mike currently 48, has $20,000 saved for retirement. He is currently saving $500 at the beginning of every month and his employer matches his total savings contribution on a monthly basis. Mike projects that he could earn 9% on his savings. He plans to retire at 65 and expects to live until age 85. His current expenditure on basic needs at the beginning of every month is $2500 every month which is expected to increase with inflation of 3%....

  • Billy is 30 years old and has $100,000 for retirement in an IRA with 6% interest,...

    Billy is 30 years old and has $100,000 for retirement in an IRA with 6% interest, compounded monthly, for the next 30 years. Billy wants to retire in exactly 30 years at age 60, and he can afford to put $X per month into the account starting next month and then continuing for the subsequent 359 months straight until he retires. When Billy retireS, he plans to use the entire balance in the IRA to purchase an ordinary annuity that...

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