Question

You want to save $1,000,000 for retirement, which will be 40 years from today. How much would you have to set aside each year to fund the retirement if you made 40 equal annual deposits beginning one year from today? Assume interest rates of 6, 8, 10, and 12 percent.

Answer #1

Future value of annuity=Annuity[(1+rate)^time period-1]/rate]

1.

1,000,000=Annuity[(1.06)^40-1]/0.06

1,000,000=Annuity*154.7619656

Annuity=1,000,000/154.7619656

=**$6461.54**

**2.**

1,000,000=Annuity[(1.08)^40-1]/0.08

1,000,000=Annuity*259.0565187

Annuity=1,000,000/259.0565187

=**$3860.16**

3.

1,000,000=Annuity[(1.1)^40-1]/0.1

1,000,000=Annuity*442.5925557

Annuity=1,000,000/442.5925557

=**$2259.41**

4.

1,000,000=Annuity[(1.12)^40-1]/0.12

1,000,000=Annuity*767.0914203

Annuity=1,000,000/767.0914203

=**$1303.63(Approx).**

You are saving for retirement and you want to have $1,000,000 in
40 years. Suppose you earn an average return of 5% on all of your
investments. How much do you need to set aside each year to reach
your goal?
You want to blow all of your retirement savings from the
previous problem in 20 years from retirement. You now earn only 2%
on your investment returns. How much can you spend each year?

You are 35 years old today and want to plan for retirement at
age 65. You want to set aside an equal amount every year from now
to retirement. You expect to live to age 85 and want to withdraw a
fixed amount each year during retirement that at age 65 will have
the same purchasing power as $83,697 has today. You plan on
withdrawing the money starting the day you retire. You have not
saved any money for retirement....

You are 43 years old today and want to plan for retirement at
age 65. You want to set aside an equal amount every year from now
to retirement. You expect to live to age 95 and want to withdraw a
fixed amount each year during retirement that at age 65 will have
the same purchasing power as $98,093 has today. You plan on
withdrawing the money starting the day you retire. You have not
saved any money for retirement....

You are 44 years old today and want to plan for retirement at
age 65. You want to set aside an equal amount every year from now
to retirement. You expect to live to age 96 and want to withdraw a
fixed amount each year during retirement that at age 65 will have
the same purchasing power as $94,725 has today. You plan on
withdrawing the money starting the day you retire. You have not
saved any money for retirement....

9You want to retire exactly 40 years from today with $2,120,000
in your retirement account. If you think you can earn an interest
rate of 10.75 percent compounded monthly, how much must you deposit
each month to fund your retirement?

You want to have $1 million for retirement, 30 years from today.
You expect your investments to earn 8%. You plan to make consistent
payment amounts at the beginning of each year for the next 20
years. Then you will stop contributing to the account. How much do
you have to set aside to make the goal?

Suppose that you are the manager of a newly formed retirement
fund. You are to set up a series of semiannual payments to
accumulate a sum of $1,000,000 in ten years. You assume that the
appropriate interest rate for the period is 6 percent annual,
compounded semiannually. The first payment into the fund will be
made six months from today and the last payment will be at the end
of the tenth year. Note: this problem is meant to make...

How many years would it take for Jughead to save an adequate
amount for retirement if he deposits $2,000 per month into an
account beginning today that pays 12 percent per year if
he wishes to have a total of $1,000,000 at retirement?
Group of answer choices
41.6 years
14.9 years
13.7 years
11.5 years
15.6 years
Please show work. Thank you so much!

You are trying to decide how much to save for retirement. Assume
you plan to save $ 5,500 per year with the first investment made
one year from now. You think you can earn 12.0% per year on your
investments and you plan to retire in 38 years, immediately after
making your last 5,500 investment.
a. How much will you have in your retirement account on the day
you retire?
b. If, instead of investing $5,500 per year, you wanted...

1. Lump Sum: How much do we need to set aside today to have
$1,000,000 in 10 years if we can earn 6% on our investment?
2. Payment at the beginning of the year: How much do we have to
set aside at the beginning of each year on an annual basis to have
the $1,000,000 in 10 years if we earn 6% on our money?
3. Lump Sum and Payment: If we put $250,000 in the bank today
and...

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 7 minutes ago

asked 43 minutes ago

asked 43 minutes ago

asked 50 minutes ago

asked 52 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago