Question

(1 point) Problem 5 - Annuity Values on Any Date Boyan is saving for her retirement....

(1 point)
Problem 5 - Annuity Values on Any Date

Boyan is saving for her retirement. How much money will she accumulate by her 65th birthday based on the following saving patterns:

a) Saving $25,000.00 on each birthday starting on her 57th57th birthday and ending on her 64th birthday (inclusive), with i=4.7%
AV =  

b) Saving $1,000.00 per month starting one month after her 35th35th birthday and ending on the day of her 52th birthday(included), with i(12)=2.4%
AV =

Homework Answers

Answer #1

a.

Number of deposit = 9 deposit (including 57 and begining and end of 64th year)

9th deposit is made on end of 64th year that is on 65th birthday.

Value at tim eof retirement is calculated in excel and screen shot provided below:

Total Saving at time of retirement on 65th birthday will be $272,281.80.

b.

Number of year of saving = 18 year (35th and 52nd year included)

monthly Saving = $1,000

value of saving at end of year 52 is calculated in excel and screen shot provided below:

value of saving at end of year 52 is $269,835.36.

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
Mirza is saving for his retirement by making deposits of $2,100 on each birthday into a...
Mirza is saving for his retirement by making deposits of $2,100 on each birthday into a savings account starting on his 57th birthday and ending on his 65th birthday (inclusive). Given an effective annual rate of interest of 4.4%, how much will he accumulate by his 65th birthd ay?
Your friend is celebrating her 35th birthday today wants to start saving for her anticipated retirement...
Your friend is celebrating her 35th birthday today wants to start saving for her anticipated retirement at age 65. She wants to be able to withdraw $105,000 from her savings account on each birthday for 20 years following her retirement; the first withdrawal will be on her 66th birthday. Your friend intends to invest her money in the local credit union, which offer 7 percent interest per year. She wants to make equal annual payments on each birthday into the...
A newly-graduated engineer begins her job on her 24th birthday, and beings contributing to her retirement...
A newly-graduated engineer begins her job on her 24th birthday, and beings contributing to her retirement account the following month. Her company has agreed to match her contributions up to 4% of her salary, so she elects to contribute 4% to get the full company match (so the total contribution to the fund is 8%). Her starting monthly salary is $5000, and it’s expected to increase an average of 3% per year (or 0.25% per month). Her nominal annual MARR...
A newly-graduated engineer begins her job on her 24th birthday, and beings contributing to her retirement...
A newly-graduated engineer begins her job on her 24th birthday, and beings contributing to her retirement account the following month. Her company has agreed to match her contributions up to 4% of her salary, so she elects to contribute 4% to get the full company match (so the total contribution to the fund is 8%). Her starting monthly salary is $5000, and it’s expected to increase an average of 3% per year (or 0.25% per month). Her nominal annual MARR...
You are saving for retirement. To live comfortably, you decide you will need to save $2,000,000...
You are saving for retirement. To live comfortably, you decide you will need to save $2,000,000 by the time you are 65. Today is your 30th birthday and you decide, starting today and continuing on every birthday up to and including your 64th birthday, that you will put the same amount into a savings account. If the interest rate is 5%, how much must you set aside each year to make sure you will have $2,000,000 in the account on...
This is a classic retirement problem. A friend is celebrating her birthday and wants to start...
This is a classic retirement problem. A friend is celebrating her birthday and wants to start saving for her anticipated retirement. She has the following years to retirement and retirement spending goals: - Years until retirement: 30 - Amount to withdraw each year: $90,000 - Years to withdraw in retirement: 30 - Interest rate: 8% Because your friend is planning ahead, the first withdrawal will not take place until one year after she retires. She wants to make equal annual...
This is a classic retirement problem. Your friend, Mary Jones, is celebrating her 30th birthday and...
This is a classic retirement problem. Your friend, Mary Jones, is celebrating her 30th birthday and wants to start saving for her anticipated retirement. She has the following years to retirement and retirement spending goals, which are as follows: Years until retirement:                                                           30 Amount to withdraw each year upon retirement:        $90,000        Years to withdraw in retirement:                                           20 Interest rate:                                                                           5% Mary is planning to make equal annual deposits into her retirement account, while her first withdrawal will take place one...
17.Problem 5-36 Annuity Interest Rate (LG8) What annual interest rate would you need to earn if...
17.Problem 5-36 Annuity Interest Rate (LG8) What annual interest rate would you need to earn if you wanted a $600 per month contribution to grow to $54,500 in six years? (Do not round intermediate calculations and round your final answer to 2 decimal places.)       18.Problem 5-51 Investing for Retirement (LG4, LG9) Monica has decided that she wants to build enough retirement wealth that, if invested at 9 percent per year, will provide her with $4,500 of monthly income for...
  The following balance sheet and income statement should be used for questions #1 through #6: Kuipers,...
  The following balance sheet and income statement should be used for questions #1 through #6: Kuipers, Inc. 2001 Income Statement (OMR in millions) Net sales 9,625 Less: Cost of goods sold 5,225 Less: Depreciation 1,890 Earnings before interest and taxes 2,510 Less: Interest paid 850 Taxable income 1,660 Less: Taxes 581 Net income 1,079 Addition to retained earnings 679 Dividends paid 400 Kuipers, Inc. 12/31/00 and 12/31/01 Balance Sheet (in OMR, in millions) 2000 2001 2000 2001 Cash 1,455 260...
QUESTION 1 All of the followings are the rights and privileges of a Common Stockholders EXCEPTING:...
QUESTION 1 All of the followings are the rights and privileges of a Common Stockholders EXCEPTING: a. Voting/Proxy Rights b. Right to Dividends c. Residual Right d. Pre-emptive Right e. Right to Interest Payments 10 points    QUESTION 2 Your best friend's parents want to buy a home in the Worcester County, but they don’t know the exact amount of money that they can afford to borrow. They can afford monthly payments of $ 1,800. A friendly bank in Worcester...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT