Question

Suppose you have a nest egg (retirement account balance) of $1,000,000 with an APR of 6%....

  1. Suppose you have a nest egg (retirement account balance) of $1,000,000 with an APR of 6%.

    1. Find the monthly payment for a 25 year annuity. In other words, you start with a million dollars and receive an equal payment every month for 25 years. At the end of that time, the account is empty.

    2. Find the monthly payment for a 30 year annuity.

    3. Find the monthly payment for a 35 year annuity.

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

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
Thirty years from now you want to have a nest egg of $1,000,000. If you can...
Thirty years from now you want to have a nest egg of $1,000,000. If you can invest at an APR of 6%, what must your regular monthly deposit be to achieve this nest egg?
Suppose you have an account that pays an APR of 4% compounded monthly. You begin putting...
Suppose you have an account that pays an APR of 4% compounded monthly. You begin putting $1000 per month into the account at age 30. (a) What size nest egg do you build at age 65? Round to the whole dollar. (b) If your life expectancy at retirement is 25 years, what will your monthly income be? Round to the whole dollar.
Suppose your retirement account has $500,000 and an APR of 4%. Find the monthly payment for...
Suppose your retirement account has $500,000 and an APR of 4%. Find the monthly payment for a 20 year annuity. How much money will you have left in the account after 10 years? At that time (after the 10 years), you think you want your annuity to be stretched from a 20-year annuity to a 25-year annuity. What will the payments be for the next 15 years?
You begin saving for retirement at age 25, and you plan to retire at age 60....
You begin saving for retirement at age 25, and you plan to retire at age 60. You want to deposit a certain amount each month into an account that pays an APR of 6% compounded monthly. Make a table that shows the amount you must deposit each month in terms of the nest egg you desire to have when you retire. (Round your answers to the nearest cent.) Nest egg size Needed deposit $100,000 $ $200,000 $ $300,000 $ $400,000...
1. The Johnsons have accumulated a nest egg of $40,000 that they intend to use as...
1. The Johnsons have accumulated a nest egg of $40,000 that they intend to use as a down payment toward the purchase of a new house. Because their present gross income has placed them in a relatively high tax bracket, they have decided to invest a minimum of $2300/month in monthly payments (to take advantage of the tax deduction) toward the purchase of their house. However, because of other financial obligations, their monthly payments should not exceed $2900. If local...
You have a retirement account into which your employer invests $75 at the end of every...
You have a retirement account into which your employer invests $75 at the end of every month, and the account pays an APR of 5.25% compounded monthly. Use the regular deposits formula to determine the balance in the account at the end of four years. Use the regular deposits formula to determine the balance in the account at the end of 20 years.
You begin saving for retirement at age 25, and you plan to retire at age 70....
You begin saving for retirement at age 25, and you plan to retire at age 70. You want to deposit a certain amount each month into an account that pays an APR of 3% compounded monthly. Make a table that shows the amount you must deposit each month in terms of the nest egg you desire to have when you retire. (Round your answers to the nearest cent.)
A. You plan to work for 40 years and then retire using a 25-year annuity. You...
A. You plan to work for 40 years and then retire using a 25-year annuity. You want to arrange a retirement income of $5000 per month. You have access to an account that pays an APR of 8.4% compounded monthly. This requires a nest egg of $626,174.58. What monthly deposits are required to achieve the desired monthly yield at retirement? (Round your answer to the nearest cent.) B. Suppose you want to save in order to purchase a new boat...
Excel retirement problem:  You just got your first job and plan to start saving for...
Excel retirement problem:  You just got your first job and plan to start saving for retirement by investing with each monthly paycheck.  You plan to retire in 45 years.  In 50 years, you want to give your daughter a gift of $1,000,000.  You will receive an inheritance from a rich great-uncle of $250,000 in 20 years.  You think you will want $150,000 every year when you retire, starting the day you retire. You plan to...
PROBLEM 7 – Time-Value-of-Money and Retirement Planning Ellen is 30 years old and plans to start...
PROBLEM 7 – Time-Value-of-Money and Retirement Planning Ellen is 30 years old and plans to start saving $10,000 annually, toward her retirement. She will put the $10,000 into an investment account at the end of each year. She will put this savings into a mutual fund. She intends to retire in 35 years. Upon her retirement, she will move her savings, (i.e. her “nest egg”) into a relatively low-risk account that earns 4.0% annually. Her first withdrawal will be made...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT