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At age 20, you start to work for a company and are offered two rather andful...
please show all work and steps thank you :) Starting at age 25, you deposit $2000...
please show all work and steps thank you
:)
Starting at age 25, you deposit $2000 a year into an IRA account for retirement. Treat the yearly deposits into the account as a continuous income stream. If money in the account earns 5%, compounded continuously, how much will be in the account 40 years later, when you retire at age 65? How much of the final amount is interest? What is the value of the IRA when you turn 65?...
please show all work and steps thank you :) Starting at age 25, you deposit $2000...
please show all work and steps thank you
:)
Starting at age 25, you deposit $2000 a year into an IRA account for retirement. Treat the yearly deposits into the account as a continuous income stream. If money in the account earns 5%, compounded continuously, how much will be in the account 40 years later, when you retire at age 65? How much of the final amount is interest? What is the value of the IRA when you turn 65?...
2. As you may know a college education is expensive. Some parents start saving early for...
2. As you may know a college education is expensive. Some parents start saving early for their child's education. Consider this scenario. Your child will need $22,000 when they are 18, $25,000 at age 19, $28,000 at 20, and $31,000 at 21. Assume you can invest at 6% compounded annually. You have two options: a) Deposit a lump sum at year 1 and let it grow until enough accrues to cover the education expense. How much would need to be...
Retirement Investment Advisors, Inc., has just offered you an annual interest rate of 4.2 percent until...
Retirement Investment Advisors, Inc., has just offered you an annual interest rate of 4.2 percent until you retire in 40 years. You believe that interest rates will increase over the next year and you would be offered 4.8 percent per year one year from today. If you plan to deposit $12,000 into the account either this year or next year, how much more will you have when you retire if you wait one year to make your deposit? Multiple Choice...
Your retirement plan: You hope to retire at age 62, and according to actuarial tables, you expect to live for 20 more years. You know of an investment option that will yield 4% annually compounded co...
Your retirement plan: You hope to retire at age 62, and according to actuarial tables, you expect to live for 20 more years. You know of an investment option that will yield 4% annually compounded continuously, and you plan to withdraw $50,000 per year in retirement, for 20 years. How much money will you need to have in the account at the beginning of retirement so that you can withdraw $50,000/year for 20 years? Begin your solution with letting R(t)...
Your best friend Frank just celebrated his 30th birthday and wants to start saving for his anticipated retirement. Frank plans to retire in 35 years and believes that he will have 20 good years of ret...
Your best friend Frank just celebrated his 30th birthday and wants to start saving for his anticipated retirement. Frank plans to retire in 35 years and believes that he will have 20 good years of retirement and believes that if he can withdraw $90,000 at the end of each year, he can enjoy his retirement. Assume that a reasonable rate of interest for Frank for all scenarios presented below is 8% per year. This is an annual rate, review each...
1. As you prepare to enter the workforce, you would like to start a systematic savings...
1. As you prepare to enter the workforce, you would like to start a systematic savings plan in order to have enough money to retire after 30 years of employment. Assume that your employers throughout your career pay annual bonuses. You have decided that you will put $ 8,000 per year into your savings account. You will make a deposit on the same date each year for 30 years. Assuming an interest rate of 9 %, how much will you...
You are 35 years old You have a non-working spouse (same age) You have one child,...
You are 35 years old You have a non-working spouse (same age) You have one child, age 3 Annual gross income S110,000 Your monthly expenses total S3,500 Monthly debt payments are S400 (counted in the S3,500) Tax-specific Information Adjusted gross income S75,500 Itemized deductions-$15,500 Child care tax credit $500 Federal income tax withheld S6,250 Amount for personal exemptions S12,500 You are exhausted at this point from buying a house, managing your taxes, learning about life insurance and saving for college....but...
To quantify the values of two potential career paths (work or go to college), you assume...
To quantify the values of two potential career paths (work or go to college), you assume the followings. 1. Your parents will give you $55,000 from a college fund today whichever career path you choose. 2. Your salary directly goes to your saving account and sits there. 3. Your total living cost and taxes are always zero. 4. You will retire in 45 years from now. 5. The interest rate of your saving account is 2% per year, compounded annually....
Two Part Question Who Wants to Be a Millionaire? You just won $1 million dollars in...
Two Part Question Who Wants to Be a Millionaire? You just won $1 million dollars in the lottery! They offer you two options for your winnings: a lump sum payment right now, or $100,000 a year over the next 10 years. Current 10-year interest rates are at 5%, and the current tax on lottery winnings is 40%. What is the amount you will receive today with the lump sum option? Which option would you select? How would you present your...
please show all work and steps thank you
:)
Starting at age 25, you deposit $2000 a year into an IRA account for retirement. Treat the yearly deposits into the account as a continuous income stream. If money in the account earns 5%, compounded continuously, how much will be in the account 40 years later, when you retire at age 65? How much of the final amount is interest? What is the value of the IRA when you turn 65?...
please show all work and steps thank you
:)
Starting at age 25, you deposit $2000 a year into an IRA account for retirement. Treat the yearly deposits into the account as a continuous income stream. If money in the account earns 5%, compounded continuously, how much will be in the account 40 years later, when you retire at age 65? How much of the final amount is interest? What is the value of the IRA when you turn 65?...
2. As you may know a college education is expensive. Some parents start saving early for their child's education. Consider this scenario. Your child will need $22,000 when they are 18, $25,000 at age 19, $28,000 at 20, and $31,000 at 21. Assume you can invest at 6% compounded annually. You have two options: a) Deposit a lump sum at year 1 and let it grow until enough accrues to cover the education expense. How much would need to be...
Retirement Investment Advisors, Inc., has just offered you an annual interest rate of 4.2 percent until you retire in 40 years. You believe that interest rates will increase over the next year and you would be offered 4.8 percent per year one year from today. If you plan to deposit $12,000 into the account either this year or next year, how much more will you have when you retire if you wait one year to make your deposit? Multiple Choice...
Your retirement plan: You hope to retire at age 62, and according to actuarial tables, you expect to live for 20 more years. You know of an investment option that will yield 4% annually compounded continuously, and you plan to withdraw $50,000 per year in retirement, for 20 years. How much money will you need to have in the account at the beginning of retirement so that you can withdraw $50,000/year for 20 years? Begin your solution with letting R(t)...
You are 35 years old You have a non-working spouse (same age) You have one child, age 3 Annual gross income S110,000 Your monthly expenses total S3,500 Monthly debt payments are S400 (counted in the S3,500) Tax-specific Information Adjusted gross income S75,500 Itemized deductions-$15,500 Child care tax credit $500 Federal income tax withheld S6,250 Amount for personal exemptions S12,500 You are exhausted at this point from buying a house, managing your taxes, learning about life insurance and saving for college....but...
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