Garth has $50,000 to invest for retirement, how much money will he have after 20 years...

Question

Question

Garth has $50,000 to invest for retirement, how much money will he have after 20 years if he buys a CD that earns an 8% APR compounded monthly?

Answer 1

Answer #1

We use the formula:
A=P(1+r/12)^12n
where
A=future value
P=present value
r=rate of interest
n=time period.

A=50,000*(1+0.08/12)^(12*20)

=50,000*4.92680277

=$246340.14(Approx)

Add a comment

Answer 2

Similar Homework Help Questions

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...
3) (2 pts) Larry would like to retire in 20 years. He currently has $150,000 in...

3) (2 pts) Larry would like to retire in 20 years. He currently has $150,000 in his retirement account and is planning on depositing an additional $800 each month in his retirement account. If Larry can earn an average APR of 7% per year compounded monthly, how much money will be in his retirement account after 20 years?
4 Question6 LO1 How much would you have to invest in years 1 and 2 in...

4 Question6 LO1 How much would you have to invest in years 1 and 2 in order to have $5,000 in 4 years if your account earns 2% compounded annually? O $2.379.13 O $2,33248 o $2,450.50 O $2.426.71 Question 7 4 pts LO1 How much would y 5.00% APR, ou have to invest today in an account that pays compounded monthly, to have $3,000 in 4 months?

Q1. After 18 years, how much money will we have for the university education for our...

Q1. After 18 years, how much money will we have for the university education for our 3 children? If we invest in the given below option: Current savings = $20,000 semi-monthly contribution of $150 at the end of each period, set aside for the next 18 years = $150 (semi-monthly contribution) average annual rate of return compounded semi-monthly = 8% Please use (display + name) the excel function/ formula for all questions 1. University education savings plan APR 8.00% period...
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
john wants to have $ 2,000,000 for retirement in 45 years. he invest in a mutual...

john wants to have $ 2,000,000 for retirement in 45 years. he invest in a mutual fund. paying an average of 955 each year compounded quarterly. How much should he deposit into his mutual fund?

9. How much would you need to deposit in an account now in order to have...

9. How much would you need to deposit in an account now in order to have $6,000 in the account in 8 years? Assume the account earns 6% interest compounded monthly. 13. Jose has determined he needs to have $800,000 for retirement in 30 years. His account earns 6% interest. a. How much would he need to deposit in the account each month? b. How much total money will he put into the account? c. How much total interest will...
A couple will retire in 20 years. Currently, they have $225,000 in savings and invest $2,000...

A couple will retire in 20 years. Currently, they have $225,000 in savings and invest $2,000 in a mutual fund each month that pays a 9% APR (monthly compounding) on average. (assume end of month contributions) A couple wishes to retire in Florence, Italy. The couple will need to withdraw $12,000 per month (beginning of the month) in retirement to live in a nice pension (apartment) near the Ufezi Museum. Their money will earn 3.6% APR with monthly compounding in...
Suppose that you want to have a $100,000 retirement fund after 30 years. How much will...

Suppose that you want to have a $100,000 retirement fund after 30 years. How much will you need to deposit now if you can obtain an APR of 5%, compounded daily? Assume that no additional deposits are to be made to the account.

You are trying to plan for retirement in 20 years and currently you have $50,000 in...

You are trying to plan for retirement in 20 years and currently you have $50,000 in a savings account and $80,000 in stocks. In addition, you plan to add to your savings by depositing $10,000 per year in your savings account at the end of each of the next 20 years, until retirement. Assume that your savings account returns 5% compounded annually and your investment in stocks will return 10% compounded annually, how much do you have at the end...