Question

Since he was 22 years old, Ben has been depositing $275 at the end of each...

Since he was 22 years old, Ben has been depositing $275 at the end of each month into a tax-free retirement account earning interest at the rate of 5.5%/year compounded monthly. Larry, who is the same age as Ben, decided to open a tax-free retirement account 5 years after Ben opened his. If Larry's account earns interest at the same rate as Ben's, determine how much Larry should deposit each month into his account so that both men will have the same amount of money in their accounts at age 65. (Round your answer to the nearest cent.)

$_____

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Mitch and Bill are both age 75. When Mitch was 24 years​ old, he began depositing...
Mitch and Bill are both age 75. When Mitch was 24 years​ old, he began depositing ​$1300 per year into a savings account. He made deposits for the first 10​ years, at which point he was forced to stop making deposits.​ However, he left his money in the​ account, where it continued to earn interest for the next 41 years. Bill​ didn't start saving until he was 47 years​ old, but for the next 28 years he made annual deposits...
A person deposits $275 at the end of each month in an account which earns 9.5%...
A person deposits $275 at the end of each month in an account which earns 9.5% compounded monthly for 29 years. The person then stops making the deposits, but allows the money to remain in the bank earning the same interest for 6 more years. a. Find the value of this account at the end of 35 years. $   b. State the total amount of interest earned on this account. $
Ben Cunnington is planning for his retirement and has $50,000 to invest as a lump sum...
Ben Cunnington is planning for his retirement and has $50,000 to invest as a lump sum into a retirement investment plan. Ben plans to work for another 35 years before retiring at the age of 65 and, as well as the $50,000 lump sum, he plans to deposit $1,500 into a capital secured share index fund each month of his remaining working life. He estimates that his retirement account will generate an annual return of 7%. Ben plans to retire...
You plan on depositing $6,000 at the end of each year for 40 years into a...
You plan on depositing $6,000 at the end of each year for 40 years into a retirement account that pays 4% interest. How much could you withdraw annually in equal beginning of year amounts starting at the time you make your last deposit and continuing for a total of 20 years, assuming balances continue to earn 4% until withdrawn?
Mitch and Bill are both age 75. When Mitch was 24 years​ old, he began depositing...
Mitch and Bill are both age 75. When Mitch was 24 years​ old, he began depositing ​$1500 per year into a savings account. He made deposits for the first 10​ years, at which point he was forced to stop making deposits.​ However, he left his money in the​ account, where it continued to earn interest for the next 41 years. Bill​ didn't start saving until he was 49 years​ old, but for the next 26 years he made annual deposits...
Daryl wishes to save money to provide for his retirement. He is now 30 years old...
Daryl wishes to save money to provide for his retirement. He is now 30 years old and will be retiring at age 64. Beginning one month from now, he will begin depositing a fixed amount into a retirement savings account that will earn 12% compounded monthly. Then one year after making his final deposit, he will withdraw $100,000 annually for 25 years. In addition, and after he passes away (assuming he lives 25 years after retirement) he wishes to leave...
Daryl wishes to save money to provide for his retirement. He is now 30 years old...
Daryl wishes to save money to provide for his retirement. He is now 30 years old and will be retiring at age 64. Beginning one month from now, he will begin depositing a fixed amount into a retirement savings account that will earn 12% compounded monthly. Then one year after making his final deposit, he will withdraw $100,000 annually for 25 years. In addition, and after he passes away (assuming he lives 25 years after retirement) he wishes to leave...
Jane has been saving $200 in her retirement account each month for the last 20 years...
Jane has been saving $200 in her retirement account each month for the last 20 years and plans to continue contributing $200 each month for the next 20 years. Her account has been earning an 8 percent annual interest rate and she expects to earn the same rate for the next 20 years. Her twin brother, Hal, has not saved anything for the last 20 years. Due to sibling rivalry, he wants to have as much as Jane is expected...
If Jackson deposits $50 at the end of each month in a savings account earning interest...
If Jackson deposits $50 at the end of each month in a savings account earning interest at a rate of 3%/year compounded monthly, how much will he have on deposit in his savings account at the end of 3 years, assuming he makes no withdrawals during that period? (Round your answer to the nearest cent.)
Jane has been saving $200 in her retirement account each month for the last 20 years...
Jane has been saving $200 in her retirement account each month for the last 20 years and plans to continue contributing $200 each month for the next 20 years. Her account has been earning an 8 percent annual interest rate and she expects to earn the same rate for the next 20 years. Her twin brother, Hal, has not saved anything for the last 20 years. Due to sibling rivalry, he wants to have as much as Jane is expected...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT