Question

Martha starts saving for her retirement by making monthly deposits into a retirement account whose annual rate is 3.3%. She plans to retire in 26 years with an amount of money that has the same buying power as $259,709 has today. If the anticipated rate of inflation if 2.4%, how much should each of her deposits be?

Answer #1

The problem has solved assuming the compounding has done mothly for investment.

Your friend is celebrating her 25th birthday today and wants to
start saving for her anticipated retirement at age 65(she will
retire on her 65th birthday). She would like to be able to withdraw
$60,000 from her saving account on each birthday for at least 25
years following her retirement (the first withdrawl will be on her
66th birthday).
Your friend intends to invest her money in the local savings
bank which offers 5.5% per year. She wants to make...

Your friend is celebrating her 25th birthday today and wants to
start saving for her anticipated retirement at age 65( she will
retire on her 65th birthday). She woukd like to be able to withdraw
$60,000 from her savings account on each birthday for at least 25
years following her retirement (the first withdrawl will be on her
66th birthday).
Your friend wants to invest her money in the local savings
bank which offers 5.5% per year. She wants to...

This is a classic retirement problem. Your friend, Mary Jones,
is celebrating her 30th birthday and wants to start
saving for her anticipated retirement. She has the following years
to retirement and retirement spending goals, which are as
follows:
Years until
retirement:
30
Amount to withdraw each year upon
retirement:
$90,000
Years to withdraw in
retirement:
20
Interest
rate:
5%
Mary is planning to make equal annual deposits into her
retirement account, while her first withdrawal will take place one...

Your friend is celebrating her 35th birthday today wants to
start saving for her anticipated retirement at age 65. She wants to
be able to withdraw $105,000 from her savings account on each
birthday for 20 years following her retirement; the first
withdrawal will be on her 66th birthday. Your friend intends to
invest her money in the local credit union, which offer 7 percent
interest per year. She wants to make equal annual payments on each
birthday into the...

Sof ́ıa saves money for retirement. She deposits $150 on the
first day of every month (starting today) for 30 years in a saving
account. Altogether, 360 investments. She plans to retire after 30
years and from that time on she does not invest money anymore, and
rather she plans to withdraw a fixed amount of money $Q every month
(starting on the first day of the 361st month) for 40 years.
Altogether, 480 withdrawals. Assume that the annual interest...

This is a classic retirement problem. A friend is celebrating
her birthday and wants to start saving for her anticipated
retirement. She has the following years to retirement and
retirement spending goals: - Years until retirement: 30 - Amount to
withdraw each year: $90,000 - Years to withdraw in retirement: 30 -
Interest rate: 8% Because your friend is planning ahead, the first
withdrawal will not take place until one year after she retires.
She wants to make equal annual...

At age 35, Frugal Frannie started saving $7,000 per
year for retirement, with annual deposits being made at
the end of each year. Frannie invests her funds in a
mutual fund that earns 7.5% per year. She plans to retire in 30
years, at age 65. How much will Frannie have in her retirement
account when she retires? Round answer to nearest dollar and do not
use a dollar sign Frannie assumes she will live to be 90 years old,...

Jane is saving for her retirement. She just turned 27 and plans
to retire when she is 65. She wants to have $3 million when she
retires. The nominal annual interest rate is 4% compounded
semi-annually. (All answers to 2 decimal places. Keep at least 5
decimal places for intermediate calculations.) Show your work
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Terry Austin is 30 years old and is saving for her
retirement. She is planning
on making 35 contributions to her retirement account at the
beginning of
each of the next 35 years. The first contribution
will be made today
(t = 0) and the final contribution will be made 34 years from
today (t = 34).
The retirement account will earn a return of 8.2 percent a
year. If each
contribution she makes is $5,493.00 how much will be in the
retirement...

On her 25th birthday, a young woman engineer decides to start
saving toward building up a retirement fund that pays 6% interest
compounded monthly (the market interest rate). She feels that
$1,000,000 worth of purchasing power in today's dollars will be
adequate to see her through her sunset years after her 65th
birthday. Assume a general inflation rate of 4% per year.
(a) If she plans to save by making 480 equal monthly deposits,
what should be the amount of...

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