Question

Alma wants to have $20,000 in her investment account ten years from now. Currently, she has nothing saved. How much would she have to deposit today to reach her goal if this is the only amount she invests? She expects to earn 8.5 percent, compounded annually. How much must she deposit today?

Answer #1

Deposit today = Future value * Present Value interest factor ( rate, years )

= $ 20,000 * PVIF ( 8.50%, 10 )

= $ 20,000 * [ 1 / 1.085 ]^{10}

= $ 20,000 * 0.44229

= **$ 8,845.71
Answer**

**Alma should invest $ 8,845.71 today.**

Nicole wants to have 2 million dollars in her account when she
retires in 40 years. Nicole's retirement account is currently
earning 8.5% interest compounded monthly. How much does she need to
deposit each month to reach her retirement goal?

Twins Jane and Hal each inherited $150,000 exactly ten years
ago. Jane invested the entire amount in a brokerage account to fund
her retirement. Her account has been earning 8% per year since she
invested it, and she expects it to earn 5% per year for the next 20
years. Hal spent all of his inheritance and has not saved anything
for retirement. Assume there are no taxes.
a. How much is Jane expected to have in her account at...

You want to have $15,000 for a down payment on a house 10 years
from now. If you can earn 13 percent, compounded annually, on your
savings, how much do you need to deposit today to reach your
goal?

Ariel wants to save $1,500,000 by her retirement date (32 years
from now). If she can earn 9.5% (annual rate) on her investments,
how much must she save per month in order to reach her goal of
$1,500,000?
Group of answer choices
$3,906.25
$211.22
$1,208.26
$604.13

Mary's 25th birthday is today, and she hopes to retire on her
65th birthday. She has determined that she will need to have
$5,000,000 in her retirement savings account in order to live
comfortably. Mary currently has no retirement savings, and her
investments will earn 7% annually. How much must she deposit into
her account at the end of each of the next 40 years to meet her
retirement savings goal?

At the end of 6 years, Jane wants to accumulate $1,500,000 for a
down payment on a housing unit. She expects to earn 8%—compounded
monthly—on her investments over the next 8 years. How much would
Jane have to put in her investment account each month to reach her
goal?
A) $26,300 B) $20,414 C) $16,300 D) $13,684

Time Value Personal Finance Problem Misty needs to have
$18,000 in 4 years to fulfill her goal of purchasing a small
sailboat. She is willing to invest a lump sum today and leave the
money untouched for 4 years until it grows to $18,000, but she
wonders what sort of investment return she will need to earn to
reach her goal. Use your calculator or spreadsheet to figure out
the approximate annually compounded rate of return needed if she
can...

Sara wants to have $500,000 in her savings account when she
retires. How much must she put in the account now, if the account
pays a fixed interest rate of 8%, to ensure that she has $500,000
in 20 years time.
1. $231,480
2. $180,884
3. $144,616
4.$107,274
Helen is saving to start a business. If she invests $10,000 in a
savings account now, which of the following is the minimum interest
rate required to ensure that she has $25,000...

Sue wants to save $1,000,000 in twenty years. She estimates she
can earn 8.5 percent on savings. She intends to make deposits at
the beginning of every year in a series of equal payments starting
today. How much does she need to save each year to reach her
goal?

1. Kathleen wants to retire on $55,000 per year for 20 years.
She estimates that she will be able to earn interest at the APR of
9% compounded annually, throughout her lifetime. To reach her
retirement goal, Kathleen will make annual contributions to her
account for the next 35 years. One year after making her last
contribution, she will take her first retirement check. How large
must her yearly contributions be?

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 28 minutes ago

asked 28 minutes ago

asked 39 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 2 hours ago

asked 2 hours ago

asked 2 hours ago

asked 2 hours ago

asked 2 hours ago