Question

You want to deposit an equal amount of money every year at the end of each of the next 30 years into an account that pays 7.5% annually compounded interest, in order to be able to retire comfortably. During your retirement years, you want to have the ability to withdraw at the end of each of the 15 years, the amount of $32,000. During your retirement years, you will keep your money in an account that earns 3% annually compounded interest. What should be your annual deposits during your working years?

5,273.85 |
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4,836.65 |
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5,894.27 |
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4,422.74 |
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3,694.55 |

Answer #1

You want to deposit an equal amount of money every year at the
end of each of the next 30 years into an account that pays 7.5%
annually compounded interest, in order to be able to retire
comfortably. During your retirement years, you want to have the
ability to withdraw at the end of each of the 15 years, the amount
of $32,000. During your retirement years, you will keep your money
in an account that earns 3% annually compounded...

You want to deposit an equal amount of money every year at the
end of each of the next 30 years into an account that pays 6.5%
annually compounded interest, in order to be able to retire
comfortably. During your retirement years, you want to have the
ability to withdraw at the end of each of the 15 years, the amount
of $32,000. During your retirement years, you will keep your money
in an account that earns 3% annually compounded...

You want to be able to withdraw $25,000 from your account each
year for 25 years after you retire.
You expect to retire in 20 years.
If your account earns 9% interest, how much will you need to
deposit each year until retirement to achieve your retirement
goals?

You expect to retire in 20 years. After you retire, you want to
be able to withdraw $3,000 from your account each month for 15
years. If your account earns 8% interest compounded monthly, how
much will you need to deposit each month until retirement to
achieve your retirement goals? (Round to the nearest cent.)

You expect to retire in 25 years. After you retire, you want to
be able to withdraw $4,500 from your account each month for 30
years.
If your account earns 9% interest compounded monthly, how much will
you need to deposit each month until retirement to achieve your
retirement goals? (Round to the nearest cent.)

You are 37 years old, and decide to save $7,500 each year
(with the first deposit one year from now), in an account paying
7% interest per year. You will make your last deposit 28 years from
now when you retire at age 65. During retirement, you plan to
withdraw funds from the account at the end of each year (so your
first withdrawal is at age 66). What constant amount will you be
able to withdraw each year if...

1/ You deposit $3000 at the beginning of each year into an
account earning 5% interest compounded annually. How much will you
have in the account in 20 years?
2/Suppose you want to have $400,000 for retirement. Your account
earns 7% interest compounded monthly. If you deposit $200 at the
end of each month, how long will it take you to reach your goal?
Round to the nearest year.

1. You want to be able to withdraw $35,000 each year for 25
years. Your account earns 5% interest.
a) How much do you need in your account at the beginning?
b) How much total money will you pull out of the account?
c) How much of that money is interest?
2. You want to buy a $23,000 car. The company is offering a 2%
interest rate for 48 months (4 years). What will your monthly
payments be?
3. Suppose...

You want to make equal deposits at the end of each month for 10
years into an account with annual interest rate 8% compounded
monthly, and then withdraw $200 at the end of each month for the
following 15 years, ending with a zero balance. How much do your
monthly deposits need to be?

How much must you deposit each year into your retirement account
starting now and continuing through year 10 if you want to be able
to withdraw $90,000 per year forever, beginning 32 years from now?
Assume the account earns interest at 12% per year.
The amount to be deposited is determined to be $

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