Luis wants to have $2,000,000 in net worth when he retires. To achieve this goal, he plans to invest $10,000 each year (starting one year from now) into an account that earns 10% interest compounded annually. The amount of time before Luis can retire as a multimillionaire is how many years?

Q: How much does Tim need to save each year for 9 years as a regular savings payment if he wants to…

A: Formulas to be used   In excel PMT(rate, nper, pv, [fv], [type]) Rate The interest rate for the…

Q: Roger decides to start an investment account by depositing $5,000 today. In one year he will invest…

A: Initial deposit (Year 0) = $5,000 Year 1 Deposit = $500 Year 2 Deposit = $600 Year 3 Deposit = $700…

Q: Francine currently has $70,000 in her 401k account at work, and plans to contribute $7,000 each year…

A: Current amount (PV) = $ 70000 Annual deposit (P) = $ 7000 Interest rate (r) = 6% Number of annual…

Q: Steve Madison needs $250,000 in 10 years. How much must he invest at the end of each year, at 5%…

A: Annuity amount = Futur value of annuity amount / {[(1+r)^n-1] /r}

Q: Barry plans to invest $350 a month for the next 30 years, how much money will he have in his account…

A: Given data, monthly payment = $350 number of years = 30 years annual rate = 12%   To calculate the…

Q: Jabari is planning for his retirement in 5 years’ time. He plans to deposit $200,000 immediately…

A: In this question, we have to calculate the future value of given annuity. Future value of annuity is…

Q: Kun is thinking about investing $4,000 at the end of each year for 30 years in a tax-sheltered…

A: Annual investment (P) = $ 4,000 Interest rate (r) = 8.5% Number of annual deposits (n) = 30

Q: Mr. Hopper expects to retire in 30 years, and he wishes to accumulate $750,000 in his retirement…

A: The future value function or concept can be used to determine the future value of a present sum or…

Q: Katrina is planning to make an additional investment at the end of each year for his retirement in…

A: Future value of an amount can be calculated by compounding that amount by using the interest rate…

Q: Suppose Kay inherits $250,000, which she invests today at a rate of return of 9 percent compounded…

A: Future value of any investment is the total of compounded value of the investments made initially…

Q: Jeremy is investing $5,000 today and will do so at the beginning of another nine years for a total…

A: The future value of the annuity due is the future worth of a cash flow series receivable/period at…

Q: An individual's salary is now $50,000 per year and he anticipates retiring in 30 more years. If his…

A: The amount which will be required at the time of retirement is that amount which a person expects to…

Q: Maria wishes to accumulate $8,000 by the end of 5 years by making equal, annual, end-of-year…

A: Here we will use the concept of time value of money. As per the concept of time value of money the…

Q: Colin thinks he can reasonably expect to buy a house in five years. He would like to have…

A: Calculation of investment (P):Answer:The amount of investment that Colin has to invest annually is…

Q: Your uncle has P375,000 and wants to retire. He expects to live for another 25 years, and he also…

A: This is annuity due  Using excel PMT function to calculate amount withdraw

Q: An engineer planning for her retirement will deposit 15% of her salary each year into a stock fund.…

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

Q: Daniel owns a homestay that yields annual rent of RM30,000. There is a rent payment due today and…

A: The value of the amount after two years which is to be computed at given interest rates is termed as…

Q: Francine currently has $70,000 in her 401k account at work, and plans to contribute $5,000 each year…

A: Future value of single sum/lump sum investment and annuity payments can be calculated by using this…

Q: Enrique already knows that he will have $300,000 when he retires. If he sets up a payout annuity for…

A: Given: Present value = $300,000 Interest rate = 4.55% Year = 15 Interest compounded = Quarterly

Q: Jacob has 5000 dollars and wants to earn 6500 dollars from the bank. If the bank gives a compound…

A: It will take 6.69 years for Jacob to reach 6500 dollars

Q: Suzette is receiving $10,000 today, $15,000 one year from today, and $25,000 four years from today.…

A: GIVEN, PV0= $10,000 PV1= $15,000 PV4= $25,000 R= 9.6% N = 30

Q: Jesse wants to have $1,400,000 in his retirement account 45 years from today. If his account earns…

A: For amortizing loans, the monthly deposits formula is: Loan Payment (P) = Amount (A) / Discount…

Q: Ronald has an investment opportunity that promises to pay him $55,000 in three years. He could eam a…

A: Financial Management: In layman’s words, financial management is the management of the finance or…

Q: Michael is updating his estate plan for himself and his family. He would like to provide an income…

A: Annuity means finite no. of payments which are same in size and made in equal intervals for the…

Q: Mr. Areola is planning to make an additional investment at the end of each year for his retirement…

A: Future value of his deposits needs to be calculated at a rate of 11%. Refer to the excel for the…

Q: our father paid $10,000 (CF at t = 0) for an investment that promises to pay $850 at the end of each…

A: We have to essentially find the disocunt rate at which this investment has NPV of zero. Thus, we…

Q: Kelly just started retirement with $500000 in his retirement account. The retirement account has an…

A: The question is based on the concept of Financial Management. As per the Bartleby guidelines we are…

Q: Michael is updating his estate plan for himself and his family. He would like to provide an income…

A: Present value refers to the current valuation for a future sum. Investors determine the present…

Q: Bill Baxter has $25,000 to invest for a year.  He can lend it to his sister, who has agreed to pay…

A: given, simple interest to sister P = $25,000 r= 10% n = 1 retirement plan: P= $25000 r=6% m=4 n=1

Q: Jamie wants to have $800,000 for her retirement in 25 years. How much should she save annually if…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: Elif received a bonus of $100,000 at the age of 30 and she decides to invest this money to a savings…

A: The nper function or concept can be used to determine the number of years or time required to…

Q: Debbie invests $5,500 in her IRA account each year for 40 years.  If she earns 7% return annually on…

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

Q: Tom plans to save $2,000 for each of the next ten years, starting tonight when he will write his…

A: Future value can be calculated using FV (rate, nper, pmt, [Pv], [type]) Rate The interest rate Nper…

Q: Kelvin has 45 years left until retirement and wants to retire with RM4 million. Assuming that his…

A: First we need to calculate he monthly payment to accumulate the amount required for retirement .…

Q: Benjamin wants to have $12,000 in 15 years after investing in an account that earns 4.2% compounded…

A: Future  Value or Amount that Benjamin wants is $12,000 Time period is 15 years Interest rate is 4.2%…

Q: David wants to retire in 40 years. If he puts away $300 per quarter, at the end of each quarter,…

A: Time value of money states that the value of the amount of money today is more than the value of the…

Q: An individual who makes $32,000 per year anticipates retiring in 30 years. If his salary is…

A: Future Value is the value of current investments at a certain future date at the assumed…

Q: Marcus bought a luxury car worth P2,000,000. He then decides to pay in a 6 year long installment…

A: Financing the purchase of certain high-priced products is a common practice of purchasers.…

Q: Bill Padley expects to invest $10,000 for 25 years, after which he wants to receive $108,347. What…

A: Future value table: This table shows the future amount of investment at specific rate and periods.…

Q: To ensure his retirement income, a 40-year old man plans to purchase annuity when he turns 65. The…

A: Monthly Annuity Payments = 7500 Time Period = 20 years * 12 = 240 months Interest % = 5%/12 End of…

Q: A couple will retire in 40 years.   They plan to spend $50,000 of their savings each year, with the…

A: Present value refers to the worth of the amount in current times that is expected to be received in…

Q: Tony Bautista needs $25,000 in 4 years. What amount must he invest today if his investment earns 12%…

A: The common formula used to calculate is Future value = Present value (1 +r )^n

Q: Leonard wants to have $400,000 in his RRSP when he retires in 31 years. How much must he deposit at…

A: Here, Required Amount (FV) is $400,000 Time Period (n) is 31 years Interest Rate (r)  is 4.8%…

Q: If Rex wants to be a millionaire by the time he retires (45 years from now), how much does he need…

A: Present Value: It represents the present worth of the future amount and is computed by the…