Question

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.)

$_____

Answer #1

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% 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 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 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withdrawn?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 $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 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 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 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 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 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

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 3 minutes ago

asked 8 minutes ago

asked 41 minutes ago

asked 42 minutes ago

asked 42 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