Question

A) Alyssa intends to retire to make contributions of $146 every week . what rate of return does she need to earn if she wishes to reach $209,400 on September 17, 2035?

B) John committed on September 17, 1991 to set aside money for retirement at the end of every week. his account earned 6.40% and he has $531,300 now, how much did he set aside each week?

C) Elizabeth just agreed to a settlement of $113,300 with Clorox. Clorox makes payments of $1,561 every month and the interest rate is 11.9%. how many years until the last payment is made?

D) Jacob committed on September 17, 2007 to set aside $2901.00 for retirement at the end of every quarter. his retirement earned 9.4%, how much does he have now?

E) Austin has been paying $343 back to his parents every month since September 17, 2015, when he borrowed $16,900. what is the implied interest rate if he just made the last payment?

Answer 1

A)
FV = $209,400
PMT = $146
Nper = (2035 - 2020) * 52 = 780
PV = 0

Rate of return can be calculated by using the following excel formula:
=RATE(nper,pmt,pv,fv)
=RATE(780,146,0,-209400)*52
= 7.45%

Rate of return = 7.45%

B)
FV = $531,300
Rate = 6.40%/52
Nper = (2020 - 1991) * 52 = 1508
PV = 0

Weekly contribution can be calculated by using the following excel formula:
=PMT(rate,nper,pv,fv)
=PMT(6.40%/52,1508,0,-531300)
= $121.30

Weekly contribution = $121.30

Note: Post the rest of the questions separately.