Question

One can solve for payments (PMT), periods (N), and interest rates (I) for annuities. The easiest...

One can solve for payments (PMT), periods (N), and interest rates (I) for annuities. The easiest way to solve for these variables is with a financial calculator or a spreadsheet.

Quantitative Problem 1: You plan to deposit $2,400 per year for 4 years into a money market account with an annual return of 3%. You plan to make your first deposit one year from today.

  1. What amount will be in your account at the end of 4 years? Round your answer to the nearest cent. Do not round intermediate calculations.
    $
  2. Assume that your deposits will begin today. What amount will be in your account after 4 years? Round your answer to the nearest cent. Do not round intermediate calculations.
    $

Quantitative Problem 2: You and your wife are making plans for retirement. You plan on living 30 years after you retire and would like to have $90,000 annually on which to live. Your first withdrawal will be made one year after you retire and you anticipate that your retirement account will earn 15% annually.

  1. What amount do you need in your retirement account the day you retire? Round your answer to the nearest cent. Do not round intermediate calculations.
    $
  2. Assume that your first withdrawal will be made the day you retire. Under this assumption, what amount do you now need in your retirement account the day you retire? Round your answer to the nearest cent. Do not round intermediate calculations.
    $

Homework Answers

Answer #1

Question 1)

a)

Hence, A/c balance after 4 years was $10,040.70

b)

Hence, A/c balance after 4 years was $10,341.93

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
Quantitative Problem 1: You plan to deposit $2,300 per year for 4 years into a money...
Quantitative Problem 1: You plan to deposit $2,300 per year for 4 years into a money market account with an annual return of 2%. You plan to make your first deposit one year from today. What amount will be in your account at the end of 4 years? Do not round intermediate calculations. Round your answer to the nearest cent. $   Assume that your deposits will begin today. What amount will be in your account after 4 years? Do not...
Quantitative Problem 1: You plan to deposit $1,700 per year for 5 years into a money...
Quantitative Problem 1: You plan to deposit $1,700 per year for 5 years into a money market account with an annual return of 2%. You plan to make your first deposit one year from today. What amount will be in your account at the end of 5 years? Round your answer to the nearest cent. Do not round intermediate calculations. $ Assume that your deposits will begin today. What amount will be in your account after 5 years? Round your...
A) You plan to deposit $2,000 per year for 6 years into a money market account...
A) You plan to deposit $2,000 per year for 6 years into a money market account with an annual return of 3%. You plan to make your first deposit one year from today. What amount will be in your account at the end of 6 years? Round your answer to the nearest cent. Do not round intermediate calculations. $ Assume that your deposits will begin today. What amount will be in your account after 6 years? Round your answer to...
Quantitative Problem 2: You and your wife are making plans for retirement. You plan on living...
Quantitative Problem 2: You and your wife are making plans for retirement. You plan on living 30 years after you retire and would like to have $80,000 annually on which to live. Your first withdrawal will be made one year after you retire and you anticipate that your retirement account will earn 15% annually. What amount do you need in your retirement account the day you retire? Do not round intermediate calculations. Round your answer to the nearest cent. $  ...
You plan to deposit $2,500 per year for 4 years into a money market account with...
You plan to deposit $2,500 per year for 4 years into a money market account with an annual return of 2%. You plan to make your first deposit one year from today. Do not round intermediate calculations. Round your answers to the nearest cent. What amount will be in your account at the end of 4 years? $ Assume that your deposits will begin today. What amount will be in your account after 4 years? $ You and your wife...
You and your wife are making plans for retirement. You plan on living 25 years after...
You and your wife are making plans for retirement. You plan on living 25 years after you retire and would like to have $95,000 annually on which to live. Your first withdrawal will be made one year after you retire and you anticipate that your retirement account will earn 15% annually. Do not round intermediate calculations. Round your answers to the nearest cent. What amount do you need in your retirement account the day you retire? $ Assume that your...
You just celebrated your 40th birthday. You plan to retire when you turn 65. Today you...
You just celebrated your 40th birthday. You plan to retire when you turn 65. Today you have $105,736.62 accumulated in your retirement plan and plan to continue adding money each month to your retirement plan for exactly 25 years, starting one month from now. When you retire you will receive a $40,000 retirement bonus from your employer and will immediately deposit the money into your retirement plan. You will then use the accumulated funds to purchase an annuity that will...
How to solve using BA II Calculator? Assume that today you are tuning 25 years old,...
How to solve using BA II Calculator? Assume that today you are tuning 25 years old, and you would like to start your retirement account. You plan to invest $25,000 per year with your first deposit being made today. You are investing in a retirement fund that will return 5.6%. You plan to retire at the age of 70 and expect to live 25 years after your retirement. Assuming this information, how much can you spend each year after you...
Six years from today you need $10,000. You plan to deposit $1,400 annually, with the first...
Six years from today you need $10,000. You plan to deposit $1,400 annually, with the first payment to be made a year from today, in an account that pays a 9% effective annual rate. Your last deposit, which will occur at the end of Year 6, will be for less than $1,400 if less is needed to reach $10,000. How large will your last payment be? Do not round intermediate calculations. Round your answer to the nearest cent. $ =
Six years from today you need $10,000. You plan to deposit $1,400 annually, with the first...
Six years from today you need $10,000. You plan to deposit $1,400 annually, with the first payment to be made a year from today, in an account that pays a 10% effective annual rate. Your last deposit, which will occur at the end of Year 6, will be for less than $1,400 if less is needed to reach $10,000. How large will your last payment be? Do not round intermediate calculations. Round your answer to the nearest cent.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT