Question

DQuestion 4 1 pts You plan to retire 30 years from now. You will save $1,000 per year for the next 15 years, and then $2,000 for the 15 years after that. You can earn 8% on your savings. How much will you have 30 years from now? Round your answer to the nearest whole number, for example 1441 D Question 5 1 pts You will save $11,000 per year for the next 30 years. You will earn 12% on your savings. At the end of 30 years, you will retire, and you expect to live for 40 years after that. How much can you withdraw every year for 40 years and not run out of money? Round your answer to the nearest whole number, for example 400. Г Question 6 1 pts 8 years ago you purchased ABC stock for $1 per share. Today, you sell the stock for $1 per share. What is your average annual return on this investment? Answer in decimals (not %) and round to 4 decimals. For example, 0.1234.

Answer 1

Answer to Question 4:

Annual deposit for first 15 years = $1,000
Annual deposit for next 15 years = $2,000
Interest rate = 8%

Future value = $1,000*1.08^29 + $1,000*1.08^28 + ... + $1,000*1.08^15 + $2,000*1.08^14 + $2,000*1.08^13 + ... + $2,000
Future value = $1,000 * 1.08^15 * (1.08^15 - 1) / 0.08 + $2,000 * (1.08^15 - 1) / 0.08
Future value = $1,000 * 86.13110 + $2,000 * 27.15211
Future value = $140,435

You will have $140,435 after 30 years.