A new engineer is considering investing in an individual retirement account (IRA) with a mutual fund that has an average annual return of 8%. What is the future worth of her IRA at age 70 if she makes annual investments of $2000 into the fund beginning on her 22nd birthday? Assume that the fund continues to earn an annual return of 8%.

Q: By the end of this year you would be 35 years old and you want to plan for your retirement. You wish…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: Following her 18th birthday, Madison began investing $44 at the end of each week in an account…

A: The computation is as follows: Hence, the retirement nest egg is $511041.72.

Q: Suppose that a woman deposits $10,000 into an investment fund that guarantees to pay 0.5% interest…

A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

Q: A civil engineer planning for her retirement places 11% of her salary each year into a…

A: First year retirement fund deposit (D1) = $180000 * 11% = $19800 Growth rate (g) = 2% n = 13 years r…

Q: New parents wish to save for their newborn's education and wish to have $46,000 at the end of 17…

A: Computation of yearly payment:Hence, the yearly payment is -$1,682.02.

Q: A manager retired at age 65, and has her retirement savings of $650,000 invested in a mutual fund…

A: An Annuity is a series of payments of fixed amounts and at fixed intervals. These can be of two…

Q: Your sister turned 35 today, and she is planning to save $85,000 per year for retirement, with the…

A: Given Information: Annual payment is $85,000 for 30 years Interest rate is 7.5%

Q: Millet wants to provide a P200,000 graduation gift for her daughter Mae who is now 16 years old. She…

A: Present value is the sum of money that must be invested in order to achieve a specific future goal.…

Q: Daniel Jackson is 30 years and wants to retire when he is 65. So far he has saved (1) $6,730 in an…

A: (1) Balance in IRA account=$6,730 Interest rate in IRA account=0.083   (2) Balance in money market…

Q: Charlie Brown, a 25-year-old professional, invests $200 a month in the XYZ Capital Opportunity Fund,…

A: Calculation of amount Charlie will have at the completion of 60 years is shown below: Hence, the…

Q: If the student purchases a ​$1000 Roth IRA when he is 25 years old and expects to earn an average…

A: Given information Purchase of Roth IRA =$1000 Interest rate =10% per year compounded annually Time…

Q: On her 23rd birthday. an engineer decides to start saving toward building up a retirement fund that…

A: a. The calculation is: The formulae snip is shown as:…

Q: A civil engineer planning her retirement will deposit 10% of her salary each year into a…

A: Using formulae, Future Value =Present Value * (1+rate)^n Where n = no. of years till end

Q: Miller is currently 35 years old and thinking about his pension fund and his income when he retired…

A: Present Value of Ordinary Annuity refers to a concept which determines the value of cash flows at…

Q: Your client is 26 years old. She wants to begin saving forretirement, with the first payment to come…

A: a) The computation of future value of annuity: Hence, the future value of annuity is $3,211,584.

Q: The parents of a newborn have decided to make deposits into an investment account on each of their…

A: Formula Present value = P*[1-(1+g)n*(1+r)-n]/(r-g) Where P - First payment i.e. $2500 g - Annual…

Q: Isabella started saving for her retirement 15 years ago. If she invested $30,000 in a stock fund…

A: Time value of money states that the value of money depreciates over time due to certain factors like…

Q: Tiffany has accumulated $60,000 in a mutual fund. If she continues to deposit $300 at the beginning…

A: Future value of a fund is the accumulated amount in the fund over a period of time with deposits and…

Q: A graduating CE is going to make $35,000/yr with Granite Construction. A total of 10% of the CE…

A: First deposit in mutual fund (D) = 10% of $35000 = $3500 Growth rate in deposits (g) = 3% n = 30…

Q: Albert is planning to invest Php570 in a mutual fund at the end of each of the next eight years. If…

A: Amount of the investment in the mutual fund at the end of the last annuity payment can be calculated…

Q: Newman Quincy wants to withdraw $32,700 each year for 14 years from a fund that earns 10% interest.…

A: 1. How much must he invest today if the first withdrawal is at year-end?  Year Cash flows pvf @…

Q: Becky would like to be a millionaire in 20 years. How much would she need to invest quarterly in a…

A: Here, Required Amount is $1,000,000 Time Period (n) is 20 years Interest Rate (r) is 9% Compounding…

Q: Sarah Wiggum would like to make a single investment and have ​$2.0 million at the time of her…

A: Future value (FV) = $2,000,000 Rate of return (r) = 0.04 Period (t) = 35 years Present value (P0) =…

Q: Amy Monroe wants to create a fund today that will enable her to withdraw $25,000 per year for 8…

A: Present value = Future annual withdrawals amount * Present value of discounting factor (8%, 5th to…

Q: Bella is 23 years old and wants to invest money for her retirement.  She wants to have $2,000,000…

A: The annual investment is calculated by the function: PMT(Rate,Nper,PV,FV)  Here, Rate = Interest…

Q: Suppose your friend is celebrating her 35th birthday today and wants to start saving for her…

A: Future Value:   The future value is the amount that will be received at the end of a certain period.…

Q: Consider Donald and Joe who are both 30- years of age and recently graduated with a degree in…

A: Amount they will have is future value of monthly savings

Q: Ms. Anna Ang, aged 39, recently purchased an endowment plan from an insurer that requires her to set…

A: Yearly Payments = $24,000 Time period = 23  Inflation Rate = 2%  Rate of return = 4%

Q: A 25-year-old engineer earning $65,000 per year wants to retire at age 55 with $2 million, and plans…

A: Since the annual interest rate is not given then we solve the problem by assuming the interest rate…

Q: our sister turned 35 today, and she is planning to save Php7,000 per year for retirement, with the…

A:

Q: By the end of this year you would be 35 years old and you want to plan for your retirement. You wish…

A: Retirement account interest = 7% Period of retirement account = 30 years Annual coupon = 6% Annuity…

Q: An engineer planning for her retirement will deposit 10% of her salary each year into a stock found.…

A: Solution- Year 0 =20000 Year 1 =12000 Salery to increase at 5% so her saving will increase by 5% for…

Q: An enterprising student is planning to have personal savings totaling $1,000,000 when she retires at…

A: Payment per period can be calculated using PMT function in excel.   PMT(rate, nper, pv, [fv],…

Q: Charlie Brown, a 25 year old professional, invests $200 a month in the XYZ Capital Opportunity Fund,…

A: Monthly payment (PMT) = $200 Monthly Average return ( r ) = 8.75%/12 = 0.729166666666667% Number of…

Q: calculate the amount of money she would have to invest in equal annual amounts to achieve her…

A: The future value of an investment is the expected value of money that will be received after a…

Q: Henry Quincy wants to withdraw $30,000 each year for 10 years from a fund that earns 8% interest.…

A: How much must he invest today if the first withdrawal is at year-end? The present value of ordinary…

Q: After completing your Bachelor of Business (Accounting) degree, suppose you secure a permanent…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: how much money will Janet have on April1, 2051?

A: An Annuity is a series of payments of fixed amounts and at fixed intervals. These can be of two…

Q: Sarah Wiggum would like to make a single investment and have $1.2 million at the time of her…

A: Future Value = $1.2 million Time Period = 30 years Rate of Return = 4%

Q: Sally Medavoy will invest $8,000 a year for 20 years in a fund that will earn 6% annual interest. If…

A: Annual investment = $8,000 Interest rate = 6% Number of years = 20 Future value of annuity when…

Q: Lisa plans to retire on her 61st birthday. On her 22nd birthday, Lisa will start saving $A per year…

A: The present value of the annuity is the current worth of a cash flow series at a certain rate of…

Q: By the end of this year you would be 35 years old and you want to plan for your retirement. You wish…

A: Annuity is the number of payments of an equal amount and is made at an equal interval of time. At…

Q: By the end of this year you would be 35 years old and you want to plan for your retirement. You wish…

A: Retirement account is the account in which deposits are made by the individual during the years of…

Q: Your client is 40 years old, and she wants to begin saving for retirement, with the first payment to…

A: Given: Yearly deposit = $5000 Interest = 11% Total time = 25 years            (65 -40 =25) 1.Using…