Question

A 20-year-old student wants to save $5 a day for her retirement. Every day, she places...

A 20-year-old student wants to save $5 a day for her retirement. Every day, she places $5 in a drawer. At the end of EACH year, she invests the accumulated savings in an automated account with an expected annual return of 9%, paid annually.

A) If she begins saving today; How much money will she have when she is 65? (4 points)

B) If she did not start saving until she was 45 years old, how much would she have at 65? (4 points)

C) How much must the 45-year-old deposit monthly to catch the 20-year old? (4 points)

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
A 35-year-old woman decides to put funds into a retirement plan. She can save $2,000 a...
A 35-year-old woman decides to put funds into a retirement plan. She can save $2,000 a year and earn 7 percent on this savings. How much will she have accumulated if she retires at age 65? Use Appendix C to answer the question. Round your answer to the nearest dollar. $    At retirement how much can she withdraw each year for 20 years from the accumulated savings if the savings continue to earn 7 percent? Use Appendix D to answer...
You are 30 years old and decide to start saving for your retirement. You plan to...
You are 30 years old and decide to start saving for your retirement. You plan to save $ 5000 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 65 Suppose you earn 11 % 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 39...
You are 26 years old and decide to start saving for your retirement. You plan to...
You are 26 years old and decide to start saving for your retirement. You plan to save $6,000 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 65. Suppose you earn 6% per year on your retirement savings, how much will you have saved for retirement right at age 65? (Round to the nearest dollar.)
Your client is 20 years old. She wants to begin saving for retirement, with the first...
Your client is 20 years old. She wants to begin saving for retirement, with the first payment to come one year from now. She can save $8,000 per year, and you advise her to invest it in the stock market, which you expect to provide an average return of 11% in the future. If she follows your advice, how much money will she have at 65? Do not round intermediate calculations. Round your answer to the nearest cent. How much...
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...
Your client is 21 years old. She wants to begin saving for retirement, with the first...
Your client is 21 years old. She wants to begin saving for retirement, with the first payment to come one year from now. She can save $8,000 per year, and you advise her to invest it in the stock market, which you expect to provide an average return of 11% in the future. a. If she follows your advice, how much money will she have at 65? Round your answer to the nearest cent. $   b. How much will she...
Your client is 23 years old. She wants to begin saving for retirement, with the first...
Your client is 23 years old. She wants to begin saving for retirement, with the first payment to come one year from now. She can save $15,000 per year, and you advise her to invest it in the stock market, which you expect to provide an average return of 8% in the future. A. If she follows your advice, how much money will she have at 65? Round your answer to the nearest cent. B. How much will she have...
Your client is 21 years old. She wants to begin saving for retirement, with the first...
Your client is 21 years old. She wants to begin saving for retirement, with the first payment to come one year from now. She can save $10,000 per year, and you advise her to invest it in the stock market, which you expect to provide an average return of 6% in the future. If she follows your advice, how much money will she have at 65? Round your answer to the nearest cent. $   How much will she have at...
Your client is 34 years old. She wants to begin saving for retirement, with the first...
Your client is 34 years old. She wants to begin saving for retirement, with the first payment to come one year from now. She can save $2,000 per year, and you advise her to invest it in the stock market, which you expect to provide an average return of 8% in the future. If she follows your advice, how much money will she have at 65? Round your answer to the nearest cent. $   How much will she have at...
You are 2424 years old and decide to start saving for your retirement. You plan to...
You are 2424 years old and decide to start saving for your retirement. You plan to save $ 6 comma 500$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 6767. Suppose you earn 11 %11% 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...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT