Question

Your actuarial study buddy is also investing 10% of her salary at the end of each...

Your actuarial study buddy is also investing 10% of her salary at the end of each year into a retirement account. Her salary this year is also $45,000. However, at her company, she expects to receive annual salary increases of $3,000 each year as she passes actuarial exams. If the annual effective rate of interest is 6%, how much will she have in her retirement account at the end of 9 years?

Round your final answer to the nearest whole dollar.

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

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
A civil engineer planning for her retirement places 11% of her salary each year into a...
A civil engineer planning for her retirement places 11% of her salary each year into a high-technology stock fund. If her salary this year (end of year 1) is $180,000 and she expects her salary to increase by 4% each year, what will be the future worth of her retirement fund after 17 years provided it earns 7% per year?
Following her 18th birthday, Madison began investing $41 at the end of each week in an...
Following her 18th birthday, Madison began investing $41 at the end of each week in an account earning 5% per year. She plans to continue making weekly investments until she turns 68. If she hadn't started investing until she turned 56, how much would she have to invest each week in order to have the same retirement nest egg at age 68? Round to the nearest cent. ​[Hint: Find the size of the retirement nest egg under the first long...
Adam’s fellow graduate, Jenna, has been trying to decide how much of her new salary she...
Adam’s fellow graduate, Jenna, has been trying to decide how much of her new salary she could save for retirement. Jenna is considering putting $3,000 of her annual savings in a stock fund. She just turned 22 and has a long way to go until retirement at age 60, and she considers this risk level reasonable. The fund she is looking at has earned an average of 6.10% over the past 15 years and could be expected to continue earning...
Your friend is celebrating her 22nd birthday today and wants to start saving for her anticipated...
Your friend is celebrating her 22nd birthday today and wants to start saving for her anticipated retirement at age 60. She estimates that the annual spending needs would be $210,000 based on the current price level, and inflation rate is expected to be 4% per year. She wants to be able to make withdrawal for spending needs on each year for 24 years following her retirement; the first withdrawal will be on her 61st birthday. Your friend intends to invest...
Your aunt is 65 years old and has just retired with $750,000 in her IRA account...
Your aunt is 65 years old and has just retired with $750,000 in her IRA account She expects the investments in this account to earn a return of 8.5% each year. She also expects to live for 30 years in retirement. She plans to withdraw an equal amount from this account each year starting now and also plans to leave $50,000 to you in 30 years. How much can she withdraw per year from the account?
Your friend is celebrating her 35th birthday today wants to start saving for her anticipated retirement...
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...
Mary’s starting salary as an Industrial Engineer is $55000. She is planning to place a total...
Mary’s starting salary as an Industrial Engineer is $55000. She is planning to place a total of 5% of her salary each year in a mutual fund (which is an investment program). She expects a 3% salary increase each year for the next 30 years of employment. If the mutual fund will have 9% annual return over the course of her career, what can Mary expect at retirement (i.e. after 30 years)? Her first payment happens one year from now....
Your beginning salary is $70,000. You deposit 12% at the end of each year in a...
Your beginning salary is $70,000. You deposit 12% at the end of each year in a savings account that earns 3% interest. Your salary increases by 2% per year. What value does your savings book show after 40 years? Please show the formulas
Eva will put $5,000 in her tax deferred retirement account each year beginning one year from...
Eva will put $5,000 in her tax deferred retirement account each year beginning one year from today and continuing for a total of 25 years. If her investment earns 8.00% per year, how much will she have at the end of 25 years? Round your answer to the nearest whole dollar. For example, $2,371.24 should be entered as 2,371.
Required information [The following information applies to the questions displayed below.] In 2017, Nina contributes 10...
Required information [The following information applies to the questions displayed below.] In 2017, Nina contributes 10 percent of her $100,000 annual salary to her 401(k) account. She expects to earn a 7 percent before-tax rate of return. Assuming she leaves this (and any employer contributions) in the account until she retires in 25 years, what is Nina’s after-tax accumulation from her 2017 contributions to her 401(k) account? (Use Table 1, Table 2, Table 3, Table 4.) (Round "Future value factor"...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT