Question

You are a financial adviser working with a client who wants to retire in eight years....

You are a financial adviser working with a client who wants to retire in eight years. The client has a savings account with a local bank that pays 7% annual interest. The client wants to deposit an amount that will provide her with $1,004,000 when she retires. Currently, she has $301,600 in the account. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided.)

How much additional money should she deposit now to provide her with $1,004,000 when she retires? (Round your answer to nearest whole dollar.)

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
You are a financial adviser working with a client who wants to retire in eight years....
You are a financial adviser working with a client who wants to retire in eight years. The client has a savings account with a local bank that pays 8% annual interest. The client wants to deposit an amount that will provide her with $1,003,500 when she retires. Currently, she has $301,400 in the account. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided.) How much additional money should...
Your goal is to be able to withdraw $5,800 for each of the next eight years...
Your goal is to be able to withdraw $5,800 for each of the next eight years beginning one year from today. The return on the investment is expected to be 10%. The amount that needs to be invested today is closest to: (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided.)
1. Fenland Co. plans to retire $210 million in bonds in five years, so it wishes...
1. Fenland Co. plans to retire $210 million in bonds in five years, so it wishes to fund a savings account at the beginning of each year during that period for which it expects to earn 12% annually. At the end of the five years, there will be enough money in the account to pay off the bonds. What amount does Fenland need to invest each year? (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD...
Carolyn wants to retire in 30 years time, and so decides to start a new retirement...
Carolyn wants to retire in 30 years time, and so decides to start a new retirement savings account. She wants to accumulate 250000 dollars by the time she retires. Initially, Carolyn deposits 2000 dollars into the account. She will make further deposits at the end of each month. The account will earn interest at annual rate 5 percent, compounded monthly. How much will she have to deposit into the account each month in order to reach this target after 30...
An engineer on the is planning to retire in 10 years. She has accumulated savings of...
An engineer on the is planning to retire in 10 years. She has accumulated savings of $450,000 that are in an account paying 7% interest compounded quarterly. If she makes no more deposits, how much would her retirement savings be when she retires? (a) $765,223 (b) $885,215 (c) $900,719 (d) $999,756
Faith wants to retire in 35 years. She makes annual contributions to a Roth IRA in...
Faith wants to retire in 35 years. She makes annual contributions to a Roth IRA in the amount of $3,950. She is taxed at 35% today, but anticipates that will change to 25% in her retirement. If the average annual rate of return on the account is 6.3%, what is the net value of Faith's IRA account when she retires? A. $305,053.33 B. $351,984.61 C. $420,925.32 D. $434,750.32 Please help!!!!
Leslie McCormack is in the spring quarter of her freshman year of college. She and her...
Leslie McCormack is in the spring quarter of her freshman year of college. She and her friends already are planning a trip to Europe after graduation in a little over three years. Leslie would like to contribute to a savings account over the next three years in order to accumulate enough money to take the trip. Assume an interest rate of 18%, compounded quarterly. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and...
Leslie McCormack is in the spring quarter of her freshman year of college. She and her...
Leslie McCormack is in the spring quarter of her freshman year of college. She and her friends already are planning a trip to Europe after graduation in a little over three years. Leslie would like to contribute to a savings account over the next three years in order to accumulate enough money to take the trip. Assume an interest rate of 12%, compounded quarterly. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and...
Brian Lee is 30 years and wants to retire when he is 65. So far he...
Brian Lee is 30 years and wants to retire when he is 65. So far he has saved (1) $5,850 in an IRA account in which his money is earning 8.3 percent annually and (2) $4,320 in a money market account in which he is earning 5.25 percent annually. Brian wants to have $1 million when he retires. Starting next year, he plans to invest the same amount of money every year until he retires in a mutual fund in...
James Smith is 30 years and wants to retire when he is 65. So far he...
James Smith is 30 years and wants to retire when he is 65. So far he has saved (1) $5,000 in an IRA account in which his money is earning 8.3 percent annually and (2) $4,000 in a money market account in which he is earning 5.25 percent annually. James wants to have $1 million when he retires. Starting next year, he plans to invest the same amount of money every year until he retires in a mutual fund in...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT