Question

You just turned 20 years old and want to retire when you turn 65. You plan to put $3,500 every year into a ROTH IRA, a retirement account from which you can withdraw money after retirement without having to pay any taxes. You expect to earn a return of 4% on your investments every year.

1. How much money can you expect to have at age 65 if you make your first annual deposit now and your last one on the day you turn 64?

2. How much money can you expect to have at age 65 if you make your first deposit 10 years from now (at age 30) and your last one on the day you turn 64?

Answer #1

Answer 1.

Annual
deposit = $3,500

Interest rate = 4%

Number of deposits = 45

Accumulated sum =
$3,500*1.04^45 + $3,500*1.04^44 + … + $3,500*1.04^2 +
$3,500*1.04

Accumulated sum = $3,500 * 1.04 * (1.04^45 - 1) / 0.04

Accumulated sum = $3,500 * 125.870568

Accumulated sum = $440,546.99

Answer 2.

Annual
deposit = $3,500

Interest rate = 4%

Number of deposits = 35

Accumulated sum =
$3,500*1.04^35 + $3,500*1.04^34 + … + $3,500*1.04^2 +
$3,500*1.04

Accumulated sum = $3,500 * 1.04 * (1.04^35 - 1) / 0.04

Accumulated sum = $3,500 * 76.598314

Accumulated sum = $268,094.10

You just turned 22 years old and want to retire when you turn
65. You plan to put $3,500 every year into a ROTH IRA, a retirement
account from which you can withdraw money after retirement without
having to pay any taxes. You expect to earn a return of 6% on your
investments every year.
Attempt 1/5 for 12 pts. Part 1 How much money can you expect to
have at age 65 if you make your first annual deposit...

you
just turned 25 years and want to retire when you turn 65. you plan
to put $3,500 every year into retirement account from which youncan
withdraw money after retirement without having to pay any taxes.
you expect to earn a return of 7% on your investments every year.
how much money you can expect to have at age 65 if you make your
annual deposit now and your last one on the day you turn64?

You just turned 20 years old and want to retire when you turn
65. You expect to live for 25 years after retirement and want to
withdraw $100,000 per year in retirement, starting on your 65th
birthday. You expect to earn a return of 6% on your investments
every year. What is the present value (as of your 65th
birthday) of the withdrawals you expect to make?
How much money should you save each year if you make the first...

Intro
You just turned 23 years old and want to retire when you turn
65. You expect to live for 25 years after retirement and want to
withdraw $80,000 per year in retirement, starting on your
65th birthday. You expect to earn a return of 5% on your
investments every year.
Pt 1. What is the present value (as of your
65th birthday) of the withdrawals you expect to make in
retirement?
Attempted answer: 1127515.56 (WRONG)
80000* [ 1 -...

You just turned 25 years old and want to retire when you turn
65. You expect to withdraw $90,000 per year for 25 years during
retirement, starting first withdrawal one year after your 65th
birthday. You expect to earn a return of 8% on your investments
every year. part 1 How much retirement saving do you need to have
by 65th birthday to support the withdrawals in the next 25 years?
Or the same question can be asked differently, what...

You just turned 34 years old, and you want to begin saving for
retirement at the end of the year. Assume that you retire in 30
years at age 65, and would like to have an income of $100,000 per
year for 20 years after retirement. How much must you save each
year to finance your retirement income? Assume a 10% interest rate,
you make the first payment at the end of the year when you turn 35
and the...

You are currently 30 years old. You would like to retire at 65
and be able to withdraw $85,000 for 25 years after the retirement
at the beginning of each year. The first withdrawal will occur the
day your retire. You have managed to save $50,000 that you will
invest in an IRA. In addition to your initial $50,000 investment,
how much will you have to deposit into the IRA every year starting
one year from now in order to...

You are 35 years old today and want to plan for retirement at
age 65. You want to set aside an equal amount every year from now
to retirement. You expect to live to age 85 and want to withdraw a
fixed amount each year during retirement that at age 65 will have
the same purchasing power as $83,697 has today. You plan on
withdrawing the money starting the day you retire. You have not
saved any money for retirement....

You are 43 years old today and want to plan for retirement at
age 65. You want to set aside an equal amount every year from now
to retirement. You expect to live to age 95 and want to withdraw a
fixed amount each year during retirement that at age 65 will have
the same purchasing power as $98,093 has today. You plan on
withdrawing the money starting the day you retire. You have not
saved any money for retirement....

You are 44 years old today and want to plan for retirement at
age 65. You want to set aside an equal amount every year from now
to retirement. You expect to live to age 96 and want to withdraw a
fixed amount each year during retirement that at age 65 will have
the same purchasing power as $94,725 has today. You plan on
withdrawing the money starting the day you retire. You have not
saved any money for retirement....

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 28 minutes ago

asked 40 minutes ago

asked 1 hour ago

asked 2 hours ago

asked 2 hours ago

asked 2 hours ago

asked 2 hours ago

asked 2 hours ago

asked 2 hours ago

asked 2 hours ago

asked 3 hours ago

asked 3 hours ago