Question

Carolyn wants to retire in 30 years time, and so decides to start a new retirement...

Carolyn wants to retire in 30 years time, and so decides to start a new retirement savings account. She wants to accumulate 250000 dollars by the time she retires.

Initially, Carolyn deposits 2000 dollars into the account. She will make further deposits at the end of each month.

The account will earn interest at annual rate 5 percent, compounded monthly.

How much will she have to deposit into the account each month in order to reach this target after 30 years? (Give your answer, in dollars, correct to the nearest cent.)

Math   Calculus   
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
Edna is 30 and plans to retire at 60. That's 30 years of saving for retirement....
Edna is 30 and plans to retire at 60. That's 30 years of saving for retirement. Edna will make a deposit into the retirement savings account once a year at the end of the year. Each deposit will be the same amount. Once she retires, Edna will use the proceeds, plus interest to live for 30 years beyond retirement. Edna wants to plan for a retirement pay of $150,000 at the end of each year. The discount rate is 10%....
Suppose someone wants to accumulate ​$120 000 for retirement in 30 years. The person has two...
Suppose someone wants to accumulate ​$120 000 for retirement in 30 years. The person has two choices. Plan A is a single deposit into an account with annual compounding and an APR of 6​%. Plan B is a single deposit into an account with continuous compounding and an APR of 5.5​%. How much does the person need to deposit in each account in order to reach the​ goal? The person must deposit ​$ ____ into the account for Plan A...
Nicole wants to have 2 million dollars in her account when she retires in 40 years....
Nicole wants to have 2 million dollars in her account when she retires in 40 years. Nicole's retirement account is currently earning 8.5% interest compounded monthly. How much does she need to deposit each month to reach her retirement goal?
This is a classic retirement problem. A friend is celebrating her birthday and wants to start...
This is a classic retirement problem. A friend is celebrating her birthday and wants to start saving for her anticipated retirement. She has the following years to retirement and retirement spending goals: - Years until retirement: 30 - Amount to withdraw each year: $90,000 - Years to withdraw in retirement: 30 - Interest rate: 8% Because your friend is planning ahead, the first withdrawal will not take place until one year after she retires. She wants to make equal annual...
A woman plans to retire in 40 years, and she expects to live for 30 years...
A woman plans to retire in 40 years, and she expects to live for 30 years after that. She wants to spend 10,000 a month after she retires. To finance her retirement she is going to invest monthly (with her investment one month from know) over 40 years at 12.6%. After she retires she will move her investment to a more liquid account earning 7.2% a year. Ignore taxes and transaction costs. How much does she have to sabe a...
An individual wants to accumulate $750,000 for retirement in 30 years. She wants to make yearly...
An individual wants to accumulate $750,000 for retirement in 30 years. She wants to make yearly deposits into an account which earns 8% annually. Determine the size of the payments needed if the payments are made at: A: the end of the year. ($6620.58) B: the beginning of each year. ($6130.16) Cannot use Excel.
Mark is planning to retire in 30 years. he wishes to make monthly deposits in a...
Mark is planning to retire in 30 years. he wishes to make monthly deposits in a retirement fund until he retires so that, beginning one-year following his retirement, he will receive annual payments of $100,000 for the next 25 years. The interest rate is 10% compounded daily. Assume 30 days per month and 365 days per year. a. What is the effective monthly interest rate? b. What is the effective annual interest rate? c. How much money must he have...
PROBLEM 7 – Time-Value-of-Money and Retirement Planning Ellen is 30 years old and plans to start...
PROBLEM 7 – Time-Value-of-Money and Retirement Planning Ellen is 30 years old and plans to start saving $10,000 annually, toward her retirement. She will put the $10,000 into an investment account at the end of each year. She will put this savings into a mutual fund. She intends to retire in 35 years. Upon her retirement, she will move her savings, (i.e. her “nest egg”) into a relatively low-risk account that earns 4.0% annually. Her first withdrawal will be made...
Maggie wants to establish an annuity for retirement purposes. She wants to make quarterly deposits for...
Maggie wants to establish an annuity for retirement purposes. She wants to make quarterly deposits for 20 years so that she can then make quarterly withdrawals of $5,000 for 10 years. The annuity earns 7.32% compounded quarterly. (A) How much will have to be in the account at the time she retires? (B) How much should be deposited each quarter for 20 years in order to accumulate the required amount? (C) What is the total amount of interest earned during...
Marie just turned 28 and are now seriously planning for her retirement. Marie wishes to retire...
Marie just turned 28 and are now seriously planning for her retirement. Marie wishes to retire two years earlier than the mandatory retirement age of 65. She hopes to be able to make end-of-month withdrawals from her retirement account of $25,000 per month for a 30-year period after that. Marie's plan is to fund her retirement by making monthly deposits between now and when she retires. The initial monthly deposit will be made at the end of the coming month....
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT