Question

3) Given 20,000 in current savings, and 5,000 a year each and every year saved for...

3) Given 20,000 in current savings, and 5,000 a year each and every year saved for 30 years.

a) What FV will someone have after 30 years with an r of 12%?

b) What FV will someone have after 30 years with an r of 10%?

c) What FV will someone have after 30 years with an r of 8%?

d) What FV will someone have after 30 years with an r of 12% for the first 10 years, then an r of 10% for 10 years, followed by an r of 8% for the last 10 years?

{Hint: Make sure to adjust how you treat the 20,000 in savings for each r}

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Please refer to below spreadsheet for calculation and answer. Cell reference also provided.

Cell reference -

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
1) You earn $5,000 a month. After taxes, social security contributions, and living expenses you have...
1) You earn $5,000 a month. After taxes, social security contributions, and living expenses you have $200 per month that you can and will save. What is the future value of $200 saved every month for 30 years if the annual rate is of return is 12% assume annual compounding period. We are looking for the value of your savings 30 years from the time you stated saving. 2) You earn $5,000 a month. After taxes, social security contributions, and...
You deposit $20,000 in the account now and you add an equal amount $X each year...
You deposit $20,000 in the account now and you add an equal amount $X each year for the next 30 years. In 30 years, there are $675,000 in your account. r=6%. How much did you add at the end of each year over the 30 years? 1. FV of $20,000 30 years from now = $………… 2. Solve for PMT = $ ……………………. that produces that new FV
You are thinking about retirement and decide to put aside $3000 each year in a savings...
You are thinking about retirement and decide to put aside $3000 each year in a savings plan that earns 10% interest. In 15 years, you will receive a one-time gift of $20,000 that also can be invested. a. How much money will you have accumulated 30 years from now? b. If your goal is to retire with $800,000 of savings, how much extra do you need to save every year? c. If you believe that you will live 15 more...
How much do you need to save every monthly (assuming equal amount of savings each month)...
How much do you need to save every monthly (assuming equal amount of savings each month) in order to have 100,000 dollars in 10 years assuming your savings/investments return 12% per year?
1. Calculate the present value of an annuity stream that pays $20,000 every year for 5...
1. Calculate the present value of an annuity stream that pays $20,000 every year for 5 years on the last day of each year if your investment pays 20% compounded quarterly? 2. Calculate the future value of $20,000 invested today for 6 years if your investment pays 4% compounded annually 3. Calculate the future value of an annuity stream that pays $6,000 every year for 5 years on the last day of each year if your investment pays 10% compounded...
You want to withdraw $100,000 every year for 35 years of retirement, and your first withdrawal...
You want to withdraw $100,000 every year for 35 years of retirement, and your first withdrawal will be one year after your last savings contribution. Assume you earn 4% APR compounded annually while you are retired. How much do you need to have saved to finance your retirement?
30) Since your first birthday, your grandparents have been depositing $1200 into a savings account on...
30) Since your first birthday, your grandparents have been depositing $1200 into a savings account on every one of your birthdays. The account pays 6% interest annually. Immediately after your grandparents make the deposit on your 18th birthday, the amount of money in your savings account will be closest to ________. A) $44,504.14 B) $37,086.78 C) $51,921.49 D) $22,252.07 5 Explanation: N = 18 PMT = $ 1200 I = 6 PV = 0 Compute FV = $37,086.78. 31) Since...
1. Mateo has nothing saved for retirement. Mateo wants to receive 66,100 dollars each year for...
1. Mateo has nothing saved for retirement. Mateo wants to receive 66,100 dollars each year for 8 years during retirement. The first of these payments will be received in 6 years. Mateo can earn a return of 9.62 percent per year. How much does Mateo need to save each year for 6 years to have exactly enough to meet his retirement goal if he makes his first savings contribution in 1 year and all savings contributions are equal?
You earn $5,000 a month. After taxes, social security contributions, and living expenses you have $200...
You earn $5,000 a month. After taxes, social security contributions, and living expenses you have $200 per month that you can and will save. What is the future value of $200 saved every month for 30 years if the annual rate of return is 6% assume annually compounding period. We are looking for the value of your savings 30 years from the time you stated saving.
You earn $5,000 a month. After taxes, social security contributions, and living expenses you have $200...
You earn $5,000 a month. After taxes, social security contributions, and living expenses you have $200 per month that you can and will save. What is the future value of $200 saved every month for 30 years if the annual rate is of return is 6%. We are looking for the value of your savings 30 years from the time you stated saving. Do not include the $ sign in your answer. Your answer must be in the format, 883,650....
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT