Question

- Someone who is saving for his retirement plans to deposit $100 every month, starting one month from now, into an investment account. If the account pays interest at 8% per year, compounded quarterly, what is the total she will have at the end of 15 years? Construct a cash flow diagram

Answer #1

2. Dave’s dad is saving money for his
retirement. In the last five years; he invests $1,800 every 6
months in a mutual fund that pays 8% compounded semi-annually. Now,
the rate drops to 5.8% compounded quarterly and he wants to deposit
$1,200 every quarter for another five years. How much money will he
has at the end of ten years?

At the end of this month, Leslie will start saving $200 a
month for retirement through his company's superannuation plan. His
employer will contribute an additional $0.50 for every $1.00 that
he saves. He is employed by this firm for 30 more years and earns
an average of 11% monthly compounding on his retirement savings.
Required:
a. How much will Leslie have in his superannuation account 30
years from now?
b. If at the end of year 20, Leslie voluntarily...

Frank, who turns 40 today, will deposit $2,500 in his empty
retirement account at the end of every three months, with the first
deposit coming three months from now and the final deposit coming
on his 50th birthday. There are no other withdrawals or deposits.
The nominal interest rate convertible quarterly, is 10%. Find
Frank’s account balance on his 57th birthday.

Sof ́ıa saves money for retirement. She deposits $150 on the
first day of every month (starting today) for 30 years in a saving
account. Altogether, 360 investments. She plans to retire after 30
years and from that time on she does not invest money anymore, and
rather she plans to withdraw a fixed amount of money $Q every month
(starting on the first day of the 361st month) for 40 years.
Altogether, 480 withdrawals. Assume that the annual interest...

1) Lauren plans to deposit $200 per month into an account at the
end of each month for the next 15 years. If her back pays interest
at the rate of 2.5% per year compounded monthly, how much will
Lauren have in her account at the end of 15 years?
2) Jim makes monthly payments of $800 into a retirement account
for ten years. If the account pays 8% compounded monthly, how much
will be in the account at the...

Deryl is saving money for his retirement. Beginning one month
from now, he will begin depositing a fixed amount into a retirement
account that will earn 12% compounded monthly. He will make 360
such deposits. Then, one month after making his final deposit, he
will start withdrawing $8,000 monthly for 25 years. The fund will
continue to earn 12% companded mon hly How large should Deryl's
monthly deposits be to achieve his retirement goal? A. $190 B. $214
C. $200...

After graduating college, Jon finds a job and decides to start
saving for retirement. He deposits 1180 at the end of each month
into a retirement account that pays 5.8% interest compounded
monthly. After 5 years, he moves the investment to a mutual fund
which pays 7.3% compounded monthly and increases his monthly
deposit to 2000.
Find the amount Jon will have on deposit 5 years after that (10
years after graduation).

1. Tom opens an account with $500. He plans on saving $75 each
month. The account pays 2.3% compounded monthly. Create a table
showing how much interest he will earn each month and his monthly
balance for the first 5 months his account is open. Do this by hand
with just the functions of a scientific calculator. Do not use the
website.
2. Lydia saved $1,345,000 for retirement. The money is deposited
in an account earning 3.2% compounded monthly. She...

at age 20, to save for retirement, jane decides to put aside
$100 every month at 2.75% interest compounded monthly. a) how much
will jane have accumulated at age 62, which is the age she plans to
retire? b) find the interest earned on this investment

Michael plans to retire in 40 years. He is now trying to decide
how much to save for his retirement. He plans to deposit equal
amount at the beginning of each month in a retirement account for
40 years, with his first saving made today. Assume the retirement
account pays him an interest rate of 6.6% p.a., compounded monthly
and Michael would like to have $2,000,000 in his retirement account
40 years later
a) How much will he have to deposit...

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