It has been proposed that in order to retire with the same lifestyle you currently have, you will need to have at least 1.5 million dollars saved by retirement. How much would you have to invest right now in order to achieve your goal? Assume you can find an investment that pays 5.6% compounded monthly. You're current age is 30 and youwould like to retire in 35 years.      2.  What interest rate would you need in order to reach this goal if you             had $8000 to invest?

Q: You want to retire in 25 years. You currently have $200,000 saved and you believe you need…

A: The concept of time value of money will have to be used here.  As per the concept of time value of…

Q: You are planning to save $1 million for retirement over the next 30 years.(a) If you are earning…

A: Excel Spreadsheet: Excel Workings:

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A: Present Value means value of future benefits at the current date. The formula for the same is as…

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A: Future Value|(FV) is worth of current payment at future date. It is computed by compounding that…

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A: as the annual savings are increasing, we can use the following formula for Future value of growing…

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Q: You are 25 years old and decide to start saving for your retirement. You plan to save $5000 at the…

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A:

Q: Because your salary should increase every year, the amount you invest for retirement should also…

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A: Future value of growing annuity The future value of a growing annuity is the value of money received…

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A: Answer:   $1,008.57

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A: The PMT function or concept can be used to determine the periodic payments required to accumulate a…

Q: You believe you will need to have saved $500,000 by the time you retire in 40 years in order to live…

A: Ordinary annuity is the payments made at the end of the period.

Q: what rate of return must you earn on that savings to hit your goal

A: Time value of money (TVM) means that the amount of money received in the present period will have…

Q: Assume you currently have $220,000 that you are ready to invest for retirement. In addition, you…

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A: Using excel PV function

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A:

Q: You want to buy a house within 3 years, and you are currently saving for the down payment. You plan…

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Q: You are starting a new job, and have the option to start a new retirement plan. Your goal is to have…

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A: In order to find the periodic payment to be made at regular interval to reach the retirement goal,…

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A: Accumulated amount needed = $2 milllion r = 6% Let A = Annual saving

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A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: How much must you save each year

A: The worth of today’s dollar at a future date is the future value of the dollar. For example, the…

Q: Suppose that you’d like to retire in 40 years and you want to have a future value of $ 1000000 in a…

A: Annuity(monthly instalment) is calculated by annuity from future value formula: Annuity from future…

Q: You'd like to have $1,000,000 saved in 35 years so that you can retire a little bit early. If you…

A:

Q: At age 20 when you graduate, you start saving for retirement. If your investment plan pays an APR of…

A: Annuity refers to the payment series of same nominal value which are paid or received at a same…

Q: You are saving for retirement. To live comfortably, you decide you will need to save $3 Million by…

A: Annual deposit is calculated using following equation Annual deposit = FV×i[(1+i)n-1]×(1+i) Where,…

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A: Given: No. of years= 20 yrs No. of months= 240 (20*12) Rate= 6% annually Payment each month= $200…

Q: You want to buy a house within 3 years, and you are currently saving for the down payment. You plan…

A: The calculation of the future value of the annuity with a 15% annual growth rate is as follows:

Q: You’d like to buy a small ranch when you retire in 38 years. You estimate that in 38 years you’ll…

A: We need to use the concept of time value of money to solve the question. According to the concept of…

Q: save

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A:

Q: You estimate that by the time you retire in 35 years, you will have accumulated savings of $2…

A: This is typical problem of present value of growing ANNUITY.

Q: You plan to retire in 20 years. You would like to maintain your current level of consumption which…

A:

Q: Suppose that you plan to invest 400,000 baths annually for 25 years for a retirement . Your…

A: Introduction: The retirement funds are created in a company where a part of the investment is made…

Q: fou are saving for retirement. To live comfortably, you decide you will need to save $3 million by…

A: Annuity due would be considered when the payment of regular amount is made at the beginning of the…

Q: You want to buy a house within 3 years, and you are currently saving for the down payment. You plan…

A: Future value is the value of present cashflow at future date compounded at the specified rate.…

Q: You are planning to invest $2,000 in an account earning 10​% per year for retirement. If you put the…

A: Return refers to the money made or lost on a investment after a period of time.

Q: You want to retire in 25 years. You currently have $200,000 saved and you believe you need…

A: Given information: Time to retirement :  25 years Present value of savings : $200,000 Value at…

Q: You want to have $350,000 saved up by the time you retire in 30 years, How much would you need to…

A: Future Amount need to be saved = $350,000 Time period = 30 years Annual interest rate = 6.5%

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A: Annual amount (P) = 40,000 Interest rate (r) = 5% Period (n) = 15  Years

Q: Your parents will retire in 30 years. They currently have $350,000 saved, and they think they will…

A: Given information: Present value amount (PV) is $350,000 Future value (FV) is $1,950,000 Number of…

Q: You have a financial goal to reach: $1,000,000 when you retire. You are currently 20 years old and…

A: Given: Future value (FV) = $ 1000000 Number of periods (n) = 60-20 = 40 Return (r) = 0.15