Question

**27. 5-52 Investing for Retirement (LG4,
LG9)**

Ross has decided that he wants to build enough retirement wealth that, if invested at 6 percent per year, will provide him with $4,600 of monthly income for 30 years. To date, he has saved nothing, but he still has 20 years until he retires.

How much money does he need to contribute per month to reach his
goal? **(Do not round intermediate calculations and round
your final answer to 2 decimal places.)**

Contribute per month $

**28.Problem 5-38 Annuity Interest Rate (LG8)**

To borrow $1,000, you are offered an add-on interest loan at 5 percent. Three loan payments are to be made, one at four months, another at eight months, and the last one at the end of the year.

Compute the three equal payments. **(Round your answer to
2 decimal places.)**

Three equal payments $

**30.Problem 5-46 EAR of Add-On Interest Loan (LG7,
LG8)**

To borrow $950, you are offered an add on interest loan at 9.5
percent with 12 monthly payments. Compute the 12 equal payments.
**(Round your answer to 2 decimal
places.)**

Equal payments $

Compute the EAR of the loan. **(Do not round intermediate
calculations and round your answer to 2 decimal
places.)**

EAR %

**32.Problem 4 and 5-3 Future Value and Number of Annuity
Payments**

**Your client has been given a trust fund valued at $1.15
million. He cannot access the money until he turns 65 years old,
which is in 30 years. At that time, he can withdraw $22,500 per
month. **

If the trust fund is invested at a 4.0 percent rate, compounded
monthly, how many months will it last your client once he starts to
withdraw the money? **(Do not round intermediate calculations
and round your final answer to 2 decimal places.)**

** **

Number of months

Answer #1

27.

Monthly Withdrawal will be $4,600 for 30 year. So total Amount require at time of retirement is calculated in excel and screen shot provided below:

Total amount required at time of retirement will be $767,241.43..

Now,

Monthly saving she has to make for fullfill her retirement goal is calculated in excel and screen shot provided below:

Monthly Saving in retirement account is $1,660.55.

Ross has decided that he wants to build enough retirement wealth
that, if invested at 5 percent per year, will provide him with
$4,700 of monthly income for 25 years. To date, he has saved
nothing, but he still has 15 years until he retires. How much money
does he need to contribute per month to reach his goal? (Do not
round intermediate calculations and round your final answer to 2
decimal places.)
Contribute per month $

Ross has decided that he wants to build enough retirement wealth
that, if invested at 7 percent per year, will provide him with
$4,200 of monthly income for 30 years. To date, he has saved
nothing, but he still has 20 years until he retires.
How much money does he need to contribute per month to reach his
goal? First compute how much money he will need at retirement, then
compute the monthly contribution to reach that goal. (Do
not...

Ross has decided that he wants to build enough retirement wealth
that, if invested at 7 percent per year, will provide him with
$3,300 of monthly income for 25 years. To date, he has saved
nothing, but he still has 15 years until he retires.
How much money does he need to contribute per month to reach his
goal? (Do not round intermediate calculations and round
your final answer to 2 decimal places.)

Ross has decided that he wants to build enough retirement wealth
that, if invested at 6% per year, will provide him with $3,700 of
monthly income for 25 years. To date, he has nothing saved, but he
still had 15 years until he retires.
How much money does he need to contribute per month to reach his
goal? First compute how much money he will need at retirement, then
the monthly contribute to reach that goal. Round final answer 2...

Problem 5-46 EAR of Add-On Interest Loan (LG7, LG8)
To borrow $1,550, you are offered an add on interest loan at 8.3
percent with 12 monthly payments. Compute the 12 equal payments.
(Round your answer to 2 decimal places.)
Equal payments
$
Compute the EAR of the loan. (Do not round intermediate
calculations and round your answer to 2 decimal
places.)
EAR
%

17.Problem 5-36 Annuity Interest Rate (LG8)
What annual interest rate would you need to earn if you wanted a
$600 per month contribution to grow to $54,500 in six years?
(Do not round intermediate calculations and round your
final answer to 2 decimal places.)
18.Problem 5-51 Investing for Retirement (LG4,
LG9)
Monica has decided that she wants to build enough retirement
wealth that, if invested at 9 percent per year, will provide her
with $4,500 of monthly income for...

Monica has decided that she wants to build enough retirement
wealth that, if invested at 9 percent per year, will provide her
with $4,500 of monthly income for 25 years. To date, she has saved
nothing, but she still has 30 years until she retires.
How much money does she need to contribute per month to reach
her goal? First compute how much money she will need at retirement,
then compute the monthly contribution to reach that goal.
(Do not...

Ross has decided that he wants to build enough retirement wealth
that, if invested at 6 percent per year, will provide him with
$2,500 monthly income for 30 years. To date, he has saved nothing,
but he still has 20 years until he retires. Approximately how much
money does he need to contribute per month to reach his goal?
$896
$902
$1,948
$2,500

Problem 4 and 5-3 Future Value and Number of Annuity
Payments
Your client has been given a trust fund valued at $1.12 million.
He cannot access the money until he turns 65 years old, which is in
25 years. At the time, he can withdraw $24,000 per month.
If the trust fund is invested at a 5.0 percent rate, how many
months will it last your client once he starts to withdraw the
money? (Assume annual compounding. Do not
round...

1. Monica has decided that she wants to build enough retirement
wealth that, if invested at 7 percent per year, will provide her
with $3,000 monthly income for 30 years. To date, she has saved
nothing, but she still has 20 years until she retires. How much
money does she need to contribute per month to reach her goal?
2.Hank purchased a $20,000 car two years ago using an 8 percent,
5-year loan. He has decided that he would sell...

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