َQ4 Many persons prepare for retirement by making monthly contributions to a savings program. Suppose that...
َQ4
Many persons prepare for retirement by making monthly contributions to a savings program. Suppose that $450 is set aside each month and invested in a savings account that pays 4% interest per year, compounded continuously.
a. Determine the accumulated savings in this account at the end of 30 years.
b. In Part (a), suppose that an annuity will be withdrawn from savings that have been accumulated at the EOY 30. The annuity will extend from the EOY 31 to the EOY 40. What is the value of this annuity if the interest rate and compounding frequency in Part (a) do not change?
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َQ4
Many persons prepare for retirement by making monthly
contributions to a savings program. Suppose that...
Many persons prepare for retirement by making monthly contributions to a savings program. Suppose that $1,700...
Many persons prepare for retirement by making monthly
contributions to a savings program. Suppose that $1,700 is set
aside each year and invested in a savings account that pays 8%
interest per year, compounded continuously.
a. Determine the accumulated savings in this account at the end
of 21 years.
b. In Part (a), suppose that an annuity will be withdrawn from
savings that have been accumulated at the EOY 21. The annuity will
extend from the EOY 22 to the...
Jamie is making quarterly contributions of of $290 to her savings account which pays interest at...
Jamie is making quarterly contributions of of $290 to her
savings account which pays interest at the APR of 7.2%, compounded
quarterly. Right after Jamie makes her 30th contribution, the bank
changes the APR to 4.5% and Jamie makes 54 more $290 contributions.
What is Jamie's balance right after her last contribution?
Jamie is making quarterly contributions of of $290 to her savings account which pays interest at the APR of 7.2%, compounded quarterly. Right after Jamie makes her 30th...
Question 1 Suppose you make a monthly contribution of $6,000 to your savings account at the...
Question 1 Suppose you make a monthly contribution of $6,000 to your savings account at the end of each month for five years. How much can be withdrawn at the end of five years, a) If your savings account earns 10% interest compounded monthly? b) If your savings account earns 10% interest compounded daily?
Justin is making quarterly contributions of of $380 to his savings account which pays interest at...
Justin is making quarterly contributions of of $380 to his savings account which pays interest at the APR of 7.6%, compounded quarterly. Right after Justin makes his 53rd contribution, the bank changes the APR to 6.7% and Justin makes 45 more $380 contributions. What is Justin's balance right after his last contribution?
Jose is making quarterly contributions of of $210 to his savings account which pays interest at...
Jose is making quarterly contributions of of $210 to his savings account which pays interest at the APR of 5.9%, compounded quarterly. Right after Jose makes his 53rd contribution, the bank changes the APR to 8.1% and Jose makes 47 more $210 contributions. What is Jose's balance right after his last contribution? Please show work written out.
Your client's 401K account has an initial balance of $6,300 and has monthly contributions of $500....
Your client's 401K account has an initial balance of $6,300 and has monthly contributions of $500. It earns 6.5% annual interest, compounded monthly, for 34 years. At the age of retirement, your client will "annuitize" their 401K balance and take monthly payments for 30 years. Their investments during retirement will earn 4.5% per year, with monthly compounding. Inflation is 1.9% annually. What is the value of your client's monthly payments in real dollars?
You are to make monthly deposits of $450 into a retirement account that pays 10.7 percent...
You are to make monthly deposits of $450 into a retirement account that pays 10.7 percent interest compounded monthly. Required: If your first deposit will be made one month from now, how large will your retirement account be in 32 years? (Do not include the dollar sign ($). Enter rounded answer as directed, but do not use the rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) Annuity future value $
You are making $500 monthly deposits into a savings account that pays interest at a nominal...
You are making $500 monthly deposits into a savings account that pays interest at a nominal rate of 6% per year, compounded monthly. What is the future equivalent value of this account after six years? The future equivalent value of this account after six years is $0 (Round to the nearest dollar.)
Suppose that for retirement purposes, over the course of 20 years, you make monthly deposits of $350.00$350.00 into an ordinary annuity that pays an annual interest rate of 7.898%7.898% compounded mon...
Suppose that for retirement purposes, over the course of 20 years, you make monthly deposits of $350.00$350.00 into an ordinary annuity that pays an annual interest rate of 7.898%7.898% compounded monthly. After those 20 years, you then want to make monthly withdrawals for 22 years, reducing the balance in the account to zero dollars. a) Find the amount of money you have accumulated in the annuity over the first 20 years: b) How much should you withdrawing monthly from your...
2.(11') Checking/savings. Suppose a person has three accounts: checking, savings and retirement. Each month, the checking...
2.(11') Checking/savings. Suppose a person has three accounts: checking, savings and retirement. Each month, the checking account is credited with a pay check. Each month the person pays rent, utilities, and other expenses from the checking account and makes a deposit into savings and into retirement (assume all these amounts are the same from month to month). The checking account has a monthly fee and earns no interest. The savings and retirement accounts earn interest. Furthermore, the person has a...
Many persons prepare for retirement by making monthly
contributions to a savings program. Suppose that $1,700 is set
aside each year and invested in a savings account that pays 8%
interest per year, compounded continuously.
a. Determine the accumulated savings in this account at the end
of 21 years.
b. In Part (a), suppose that an annuity will be withdrawn from
savings that have been accumulated at the EOY 21. The annuity will
extend from the EOY 22 to the...
Jamie is making quarterly contributions of of $290 to her
savings account which pays interest at the APR of 7.2%, compounded
quarterly. Right after Jamie makes her 30th contribution, the bank
changes the APR to 4.5% and Jamie makes 54 more $290 contributions.
What is Jamie's balance right after her last contribution?
Jamie is making quarterly contributions of of $290 to her savings account which pays interest at the APR of 7.2%, compounded quarterly. Right after Jamie makes her 30th...
Question 1 Suppose you make a monthly contribution of $6,000 to your savings account at the end of each month for five years. How much can be withdrawn at the end of five years, a) If your savings account earns 10% interest compounded monthly? b) If your savings account earns 10% interest compounded daily?
Justin is making quarterly contributions of of $380 to his savings account which pays interest at the APR of 7.6%, compounded quarterly. Right after Justin makes his 53rd contribution, the bank changes the APR to 6.7% and Justin makes 45 more $380 contributions. What is Justin's balance right after his last contribution?
You are making $500 monthly deposits into a savings account that pays interest at a nominal rate of 6% per year, compounded monthly. What is the future equivalent value of this account after six years? The future equivalent value of this account after six years is $0 (Round to the nearest dollar.)
2.(11') Checking/savings. Suppose a person has three accounts: checking, savings and retirement. Each month, the checking account is credited with a pay check. Each month the person pays rent, utilities, and other expenses from the checking account and makes a deposit into savings and into retirement (assume all these amounts are the same from month to month). The checking account has a monthly fee and earns no interest. The savings and retirement accounts earn interest. Furthermore, the person has a...
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