Mr. Ky would like to retire in 20 years. At the time of his retirement, he is planning on purchasing an Oceanside condo that is estimated to cost $3 million dollars 20 years from now. How much should Mr. Ky save each month to achieve his goal if the annual interest he can earn is 8 percent?
FVOrdinary Annuity = C*(((1 + i )^n -1)/i) |
C = Cash flow per period |
i = interest rate |
n = number of payments |
3000000= Cash Flow*(((1+ 8/1200)^(20*12)-1)/(8/1200)) |
Cash Flow = 5093.2 |
Mr. Ky would like to retire in 20 years. At the time of his retirement, he...
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?
David Cooper wants to save money to meet three objectives. First, he would like to retire 30 years from now with retirement income of $21,000 per month for 20 years, with first payment received 30 years and 1 month from now. Second, he would like to purchase a cabin in Boise in 10 years at an estimated cost of $330,000. Third, after he passes on the end of the 20 years of withdrawals, he would like to leave an inheritance...
(2 pts) Larry would like to retire in 25 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 25 years? 3)
Bilbo Baggins wants to save money to meet three objectives. First, he would like to be able to retire 30 years from now with retirement income of $26,000 per month for 20 years, with the first payment received 30 years and 1 month from now. Second, he would like to purchase a cabin in Rivendell in 10 years at an estimated cost of $288,000. Third, after he passes on at the end of the 20 years of withdrawals, he would...
Bilbo Baggins wants to save money to meet three objectives. First, he would like to be able to retire 30 years from now with retirement income of $28,500 per month for 25 years, with the first payment received 30 years and 1 month from now. Second, he would like to purchase a cabin in Rivendell in 10 years at an estimated cost of $385,000. Third, after he passes on at the end of the 25 years of withdrawals, he would...
Justin Barber would like to retire in 25 years, and he estimates that he will need $1,000,000 at this time. He plans to deposit $1,000 a month in a retirement account that pays 8% annual interest. If Justin makes his first $1,000 deposit next month, how much money will he have by the end of 25 years? Will he have the $1,000,000 that he needs? How much will Justin have to deposit every month if he wants to have exactly...
Bilbo Baggins wants to save money to meet three objectives. First, he would like to be able to retire 30 years from now with a retirement income of $32,500 per month for 20 years, with the first payment received 30 years and 1 month from now. Second, he would like to purchase a cabin in Rivendell in 10 years at an estimated cost of $405,000. Third, after he passes on at the end of the 20 years of withdrawals, he...
Bilbo Baggins wants to save money to meet three objectives. First, he would like to be able to retire 30 years from now with a retirement income of $25,000 per month for 20 years, with the first payment received 30 years and 1 month from now. Second, he would like to purchase a cabin in Rivendell in 10 years at an estimated cost of $330,000. Third, after he passes on at the end of the 20 years of withdrawals, he...
Bilbo Baggins wants to save money to meet three objectives. First, he would like to be able to retire 30 years from now with retirement income of $28,000 per month for 30 years, with the first payment received 30 years and 1 month from now. Second, he would like to purchase a cabin in Rivendell in 20 years at an estimated cost of $1,239,000. Third, after he passes on at the end of the 30 years of withdrawals, he would...
20. Assume that your father is now so years old, that he plans to retire in 10 years, and that he expects to live for 25 years after he retires (that is, until he is 85). If he retired today, he could live comfortably on $50,000 per year. However, because of inflation, his target retirement income must increase by 5% per year until his retirement date (.e. inflation is 5% annually). In other words, he must receive more than $50,000...