Question

Deryl is saving money for his retirement. Beginning one month from now, he will begin depositing...

Deryl is saving money for his retirement. Beginning one month from now, he will begin depositing a fixed amount into a retirement account that will earn 12% compounded monthly. He will make 360 such deposits. Then, one month after making his final deposit, he will start withdrawing $8,000 monthly for 25 years. The fund will continue to earn 12% companded mon hly How large should Deryl's monthly deposits be to achieve his retirement goal? A. $190 B. $214 C. $200 D. $217 E. none of the above

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
Daryl wishes to save money to provide for his retirement. He is now 30 years old...
Daryl wishes to save money to provide for his retirement. He is now 30 years old and will be retiring at age 64. Beginning one month from now, he will begin depositing a fixed amount into a retirement savings account that will earn 12% compounded monthly. Then one year after making his final deposit, he will withdraw $100,000 annually for 25 years. In addition, and after he passes away (assuming he lives 25 years after retirement) he wishes to leave...
Daryl wishes to save money to provide for his retirement. He is now 30 years old...
Daryl wishes to save money to provide for his retirement. He is now 30 years old and will be retiring at age 64. Beginning one month from now, he will begin depositing a fixed amount into a retirement savings account that will earn 12% compounded monthly. Then one year after making his final deposit, he will withdraw $100,000 annually for 25 years. In addition, and after he passes away (assuming he lives 25 years after retirement) he wishes to leave...
Problem (5 marks) Daryl wishes to save money to provide for his retirement. He is now...
Problem Daryl wishes to save money to provide for his retirement. He is now 30 years old and will be retiring at age 64. Beginning one month from now, he will begin depositing a fixed amount into a retirement savings account that will earn 12% compounded monthly. Then one year after making his final deposit, he will withdraw $100,000 annually for 25 years. In addition, and after he passes away (assuming he lives 25 years after retirement) he wishes to...
Daryl wishes to save money to provide for his retirement. Beginning one year from now, Daryl...
Daryl wishes to save money to provide for his retirement. Beginning one year from now, Daryl will begin depositing the same fixed amount each year for the next 30 years into a retirement savings account. Starting one year after making his final deposit, he will withdraw $100,000 annually for each of the following 25 years (i.e. he will make 25 withdrawals in all). Assume that the retirement fund earns 12% annually over both the period that he is depositing money...
A year from now, you plan to begin saving for your retirement by depositing $20,000 into...
A year from now, you plan to begin saving for your retirement by depositing $20,000 into a new savings account that has an expected return of 5.75% compounded monthly. You plan to continue depositing the same amount each year until you retire in 35 years. You expect to make withdrawals from your savings account every month for 40 years after you retire. Assume you were asked to find the amount you will be able to withdraw each month from your...
A week from now, you plan to begin saving for your retirement by depositing $200 into...
A week from now, you plan to begin saving for your retirement by depositing $200 into a new savings account that has an expected return of 7.75% compounded monthly. You plan to continue depositing the same amount each week until you retire in 40 years. You expect to make withdrawals from your savings account every year for 35 years after you retire. Assume you were asked to find the amount you will be able to withdraw each year from your...
After graduating​ college, Jon finds a job and decides to start saving for retirement. He deposits...
After graduating​ college, Jon finds a job and decides to start saving for retirement. He deposits 1180 at the end of each month into a retirement account that pays 5.8​% interest compounded monthly. After 5​ years, he moves the investment to a mutual fund which pays 7.3​% compounded monthly and increases his monthly deposit to 2000. Find the amount Jon will have on deposit 5 years after that​ (10 years after​ graduation).
You wish to save money to provide for retirement. Beginning one year from now, you will...
You wish to save money to provide for retirement. Beginning one year from now, you will begin depositing a annual fixed amount into a retirement savings account that will earn 8% annually. You will make 30 such deposits. Then, one year after making the final deposit, you will withdraw $100,000 annually for 20 years (no more deposits). You wish to have $50,000 left in the account after the 20-year retirement period ends (note that this final cash flow has the...
Sam is just starting his career and wants to begin saving for retirement. Sam estimates he...
Sam is just starting his career and wants to begin saving for retirement. Sam estimates he will need to withdrawal $8000/month to live comfortably while retired and based on life expectancy this would last for 25 years. If he begins saving in 2020 and makes annual contributions growing at 4%, how much will he need to make his first contribution to reach his retirement goal by 2060? Sam’s retirement investments are expected to earn a 9% return (both before AND...
Ron is planning for retirement and hopes to make withdraws of $3,600 at the end of...
Ron is planning for retirement and hopes to make withdraws of $3,600 at the end of each month for 13 years once he's retired. He plans on retiring in 20 years. (a) Find the amount that Ron must have in his retirement account in 20 years from now in order to achieve his financial retirement goal assuming that once he is retired he will earn 5% compounded monthly. (b) If Ron plans to work for another 20 years and also...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT