Question

Two friends, Alysha and Laura, are planning for their retirement. Both are 20 years old and...

Two friends, Alysha and Laura, are planning for their retirement. Both are 20 years old and plan on retiring in 40 years with $1,000,000 each. Laura plans on making annual deposits beginning in one year (total of 40 deposits) while Alysha plans on waiting and then depositing twice as much as Laura deposits.

If both can earn 7.4 percent per year, how long can Alysha wait before she has to start making her deposits? (Round answer to 2 decimal places, e.g. 125. Do not round your intermediate calculations.)

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

SOLVED WITH BA II PLUS CALCULATOR

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
Daryl wishes to save money to provide for his retirement. He is now 30 years old...
Daryl wishes to save money to provide for his retirement. He is now 30 years old and will be retiring at age 64. Beginning one month from now, he will begin depositing a fixed amount into a retirement savings account that will earn 12% compounded monthly. Then one year after making his final deposit, he will withdraw $100,000 annually for 25 years. In addition, and after he passes away (assuming he lives 25 years after retirement) he wishes to leave...
Daryl wishes to save money to provide for his retirement. He is now 30 years old...
Daryl wishes to save money to provide for his retirement. He is now 30 years old and will be retiring at age 64. Beginning one month from now, he will begin depositing a fixed amount into a retirement savings account that will earn 12% compounded monthly. Then one year after making his final deposit, he will withdraw $100,000 annually for 25 years. In addition, and after he passes away (assuming he lives 25 years after retirement) he wishes to leave...
A young couple, both 25 years old, are planning to retire in 40 years at the...
A young couple, both 25 years old, are planning to retire in 40 years at the age of 65. After they retire, they expect to live for an additional 20 years, until age 85. They plan to begin saving for retirement today and based on information from their financial planner, they think they will earn 8% on their investment compounded annually. They think they will earn 5% on their retirement savings after they retire. 1. If they begin at age...
Ron is planning for retirement and hopes to make withdraws of $3,600 at the end of...
Ron is planning for retirement and hopes to make withdraws of $3,600 at the end of each month for 13 years once he's retired. He plans on retiring in 20 years. (a) Find the amount that Ron must have in his retirement account in 20 years from now in order to achieve his financial retirement goal assuming that once he is retired he will earn 5% compounded monthly. (b) If Ron plans to work for another 20 years and also...
Case narrative: A young couple, both 25 years old, are planning to retire in 40 years...
Case narrative: A young couple, both 25 years old, are planning to retire in 40 years at the age of 65. After they retire, they expect to live for an additional 20 years, until age 85. They plan to begin saving for retirement today and based on information from their financial planner, they think they will earn 8% on their investment compounded annually. They think they will earn 5% on their retirement savings after they retire. Question #1 answer: $1,295,283...
Retirement planning Hal Thomas, a 25-year-old college graduate, wishes to retire at age 65. To supplement...
Retirement planning Hal Thomas, a 25-year-old college graduate, wishes to retire at age 65. To supplement other sources of retirement income, he can deposit $2,000 each year into a tax-deferred individual retirement arrangement (IRA). The IRA will earn a 10% return over the next 40 years. If Hal makes end-of-year $2,000 deposits into the IRA, how much will he have accumulated in 40 years when he turns 65? If Hal decides to wait until age 35 to begin making end-of-year...
Problem (5 marks) Daryl wishes to save money to provide for his retirement. He is now...
Problem Daryl wishes to save money to provide for his retirement. He is now 30 years old and will be retiring at age 64. Beginning one month from now, he will begin depositing a fixed amount into a retirement savings account that will earn 12% compounded monthly. Then one year after making his final deposit, he will withdraw $100,000 annually for 25 years. In addition, and after he passes away (assuming he lives 25 years after retirement) he wishes to...
Laura Hall is a sales executive at a Baltimore firm. She is 25 years old and...
Laura Hall is a sales executive at a Baltimore firm. She is 25 years old and plans to invest $4,700 each year in an IRA account until she is 65 at which time she will retire (a total of 40 payments). If Laura invests at the beginning of each year, and the IRA investment will earn 11.05 percent annually, how much will she have when she retires? Assume that she makes the first payment today. (Round factor values to 4...
You are 23 years old and decide to start saving for your retirement. You plan to...
You are 23 years old and decide to start saving for your retirement. You plan to save $ 6,500 at the end of each year​ (so the first deposit will be one year from​ now), and will make the last deposit when you retire at age 69. Suppose you earn 12% per year on your retirement savings. a. How much will you have saved for​ retirement? b. How much will you have saved if you wait until age 40 to...
Harry is planning to save for retirement over the next 25 years. To do this, he...
Harry is planning to save for retirement over the next 25 years. To do this, he plans to invest $500 per month, and his company will match this with a deposit of $450 per month. The first payment will be made today. He plans to earn an 11% APR (compounded monthly) each year while he save. Assume that Harry will make monthly withdraws beginning the month he retires; also, assume that he plans to earn 3% APR (compounded monthly) on...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT