11. You believe that you will need $800,000 by the time you retire in 40 years....
5. What is the interest rate if Fif = 1,000, PV 600, and t 50 periods? 6. What is the annual rate (APR) if compounding is monthly, and the interest rate is 4% 7. Let there be two compounding periods per year. Let the APR be 10%. What is the EAR'? 8. What is EAR if APR 6% and compounding is monthly? 9. Consider an annuity. What is the payment amount per month if PVA = 6%, and for five...
You believe you will need to have saved $480,000 by the time you retire in 40 years in order to live comfortably. If the interest rate is 6% per year, how much must you save each year to meet your retirement goal? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Annual savings
Practice Problems 1. You invest $8,000 in a savings account, the interest rate is 12% per year and the length of time is 15 years. Compounding is monthly. What is the value of the savings account at the end of ten years? 2. What would be the answer if compounding is every six months? 3. How many periods does it take for money to double if the interest rate is 12% per period? 4. If the interest rate is 12%...
You believe you will spend $31,000 a year for 11 years once you retire in 22 years. If the interest rate is 7% per year, how much must you save each year until retirement to meet your retirement goal? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
You believe you will need to have saved S456,000 by the time you retire in 30 years in order to live comfortably. You also believe that you will inherit $109,000 in 5 years. (Do not round intermediate calculations. Round your answers to 2 decimal places.) If the interest rate is 6% per year, what is the future value of your inheritance at retirement? Future value How much additional money must you save to meet your retirement goal assuming you save...
Homework Question for Time value of money You plan to retire in 30 years and plan on saving $15,000 annually, starting next year, for the next 30 years. You expect to need $120,000 about 18 years from now for college tuition for your recently born daughter which must be paid out of these savings. You expect to live 35 years during retirement (the first retirement payment will be 31 years from today). a. If you assume an interest rate of...
You believe you will spend $42.000 a year for 18 years once you retire in 36 years. If the interest rate is 5% per year, how much must you save each year until retirement to meet your retirement goal? (Do not round Intermediate calculations. Round your answer to 2 decimal places.) Annual savings
You believe you will spend $42,000 a year for 18 years once you retire in 36 years. If the interest rate is 5% per year, how much must you save each year until retirement to meet your retirement goal? (Do not round Intermediate calculations. Round your answer to 2 decimal places.) Annual savings
a. You believe you will spend $42,000 a year for 18 years once you retire in 36 years. If the interest rate is 5% per year, how much must you save each year until retirement to meet your retirement goal? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
A couple will retire in 40 years; they plan to withdraw $39000 a year in retirement, and they will make 20 withdraw. They believe that they can earn 8% interest on the retirement savings. If they make an annual deposit into their retirement savings, how much will they need to save each year? Assume the first deposit comes at the end of the first year, and the first withdraw comes at the end of yer 41. Please show all work...