Question

Jane has been saving $200 in her retirement account each month for the last 20 years and plans to continue contributing $200 each month for the next 20 years. Her account has been earning an 8 percent annual interest rate and she expects to earn the same rate for the next 20 years. Her twin brother, Hal, has not saved anything for the last 20 years. Due to sibling rivalry, he wants to have as much as Jane is expected to have at the end of 20 years. If Hal expects to earn the same annual interest rate as Jane, how much must Hal save each month to achieve his goal?

A.$2,909.17

B.$400.00

C.$1,185.36

D. $1,569.85

Answer #1

Jane has been saving $200 in her retirement account each month
for the last 20 years and plans to continue contributing $200 each
month for the next 20 years. Her account has been earning an 8
percent annual interest rate and she expects to earn the same rate
for the next 20 years. Her twin brother, Hal, has not saved
anything for the last 20 years. Due to sibling rivalry, he wants to
have as much as Jane is expected...

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...

Jane is planning for her retirement. Each month she places $200
in an account that pays 12% nominal interest compounded monthly.
She makes the first deposit of $200 on January 31, 1997. The last
$200 deposit will be made on December 31, 2016. If the interest
rate remains constant and all deposits are made as planned, what
amount will be in Jane’s retirement account on January 1, 2017?
Answer: $198,000.
I know the correct answer but am struggling to get...

Sanaa has been saving money in the same account for 20 years.
She started with $3000. For the first 6 years, the account paid
j(12) = 7% . For the next 7 years, it paid j(12) = 9%. For the last
7 it paid j(12) = 6% compounded.
a) How much money is in her account today?
b) Suppose the account had paid the same effective annual rate r
for all 20 years, and that her starting balance and ending...

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

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...

For 20 years Jenny deposits $500 at the end of each month in an
account earning 4.5% per year compounded monthly.
How much will she have in the account in 20
years?
How much interest did she earn in this 20 year
period?
for the next 25 years Jenny neither deposits nor withdraws any
money while the account continues to earn 4.5% per year compounded
monthly.
How much does Jenny have in the account after
these 25 years?
How much...

Must show all your work.
1.) Gina has a 401K to which she's been contributing to for 15
years. She put in $300/month additionally her company contributes
80% of her contribution. The average annual interest rate is
7.90%
a. How much money is in the account at the moment?
b. How much money will Gina have in her account when she retires
in 20 years?
c. How much of the account balance when she retires is
interest?
d. In 20...

You are 20 years old. You deposit $200 per month for 4 years
into an account paying 12 percent annual rate, compounded monthly.
After that, you stop making any new deposits but leave the money in
the account, earning the same rate. How much money will be in the
account when you become 64 years old? A. $905,595 B. $1,452,785 C.
$763,410 D. $1,354,505 E. $1,058,679 F. $1,213,776

Mary turned 20 today. She has decided to begin an
annuity account to prepare for her future. She can
afford to put $50/month in the investment. The account
returns 7% annual interest. She hopes she will be able
to keep the account until she retires at 65. If she
retires on her birthday, how much money will she have from the
annuity for her retirement?
Ashley, Mary’s twin sister, thinks she is nuts. She
has 45 years to worry about that. Then, when Ashley
turned 45, she...

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