Question

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.

Answer #1

a)

b)

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...

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.)

Suppose you have a nest egg (retirement account balance)
of $1,000,000 with an APR of 6%.
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.
Find the monthly payment for a 30 year
annuity.
Find the monthly payment for a 35 year
annuity.

We are considering the effects of starting early or late to save
for retirement. Assume that each account considered has an APR of
6% compounded monthly.
Against expert advice, you begin your retirement program at age 40.
You plan to retire at the age of 65. What monthly contributions do
you need to make to save up a nest egg of
$217,699.63?
(Round your answer to the nearest cent.)

We are considering the effects of starting early or late to save
for retirement. Assume that each account considered has an APR of
6% compounded monthly.
Against expert advice, you begin your retirement program at age 40.
You plan to retire at the age of 65. What monthly contributions do
you need to make to save up a nest egg of $167,599.63? (Round your
answer to the nearest cent.)

You decide to start a savings account in 2020 and you begin by
putting $300 into the account every month. If the APR on the
account is 3%, how much money will you have in the account by 2055?
Round to the nearest whole dollar. (no commas)
Total in Account: $
Of your calculated Total deposit amount, how much money total
would you have put into the account by 2055? Round to the nearest
whole dollar. (no commas)
Total money...

You open an investment account that pays 12% APR, compounded
monthly. Compute the present value of 10 monthly payments of $5000
(the first payment made 1 month from today).

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...

You have decided to begin saving for a vacation to Hawaii. You
believe that the full cost of the vacation, with airfare,
accommodations, and dining will be $5,000. You are going to begin
saving $150 per month, beginning one month from today. If your
account pays interest at a rate of 7.2% APR compounded monthly, how
many months will it take to save $5,000? Round your answer UP to
the nearest whole month.

Suppose you put $2000 in a savings account at an APR of 6%
compounded monthly. Fill in the table below. (Calculate the
interest and compound it each month rather than using the compound
interest formula. Round your answers to the nearest cent.)
Please fill in all areas that have a $ sign
Month
Interest Earned
Balance
$2000
1
$
$
2
$
$
3
$
$

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