We are considering the effects of starting early or late to save for retirement. Assume that each account considered has an APR of 6% compounded monthly. Following expert advice, you begin your retirement program as soon as you graduate from college at age 33. You plan to retire at the age of 65. What monthly contrib to make to have a retirement account worth $950,000? (Round your answer to the nearest cent.) $ 820.61 What will your total personal contribution be by the time you retire if you start saving after graduation? $ 315114.24 Against expert advice, you begin your retirement program at age 47. You plan to retire at the age of 65. What monthly contributions do you need to make to have a re worth $950,000? (Round your answer to the nearest cent.) $ 2452.54 What will your total personal contribution be by the time you retire if you start saving at age 47? $ 115269.38 How much more will you personally contribute by the time you retire if you start saving at age 47 instead of starting right after graduation? $ 42073323.70

We are considering the effects of starting early or late to save for retirement. Assume that each account considered has an APR of 6% compounded monthly. Following expert advice, you begin your retirement program as soon as you graduate from college at age 33. You plan to retire at the age of 65. What monthly contrib to make to have a retirement account worth $950,000? (Round your answer to the nearest cent.) $ 820.61 What will your total personal contribution be by the time you retire if you start saving after graduation? $ 315114.24 Against expert advice, you begin your retirement program at age 47. You plan to retire at the age of 65. What monthly contributions do you need to make to have a re worth $950,000? (Round your answer to the nearest cent.) $ 2452.54 What will your total personal contribution be by the time you retire if you start saving at age 47? $ 115269.38 How much more will you personally contribute by the time you retire if you start saving at age 47 instead of starting right after graduation? $ 42073323.70

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 44P

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Similar questions

You put $250 in the bank for S years at 12%. A. If interest is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the fifth year. B. Use the future value of $1 table in Appendix B and verity that your answer is correct.
You put $600 in the bank for 3 years at 15%. A. If Interest Is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the third year. B. Use the future value of $1 table In Appendix B and verify that your answer is correct.
Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $4,200 over the next 6 years when the interest rate is 8%, how much do you need to deposit in the account? B. If you place $8,700 in a savings account, how much will you have at the end of 12 years with an interest rate of 8%? C. You invest $2,000 per year, at the end of the year, for 20 years at 10% interest. How much will you have at the end of 20 years? D. You win the lottery and can either receive $500,000 as a lump sum or $60,000 per year for 20 years. Assuming you can earn 3% interest, which do you recommend and why?
Refer to the present value table information on the previous page. What amount should Brett have in his bank account today, before withdrawal, if he needs 2,000 each year for 4 years, with the first withdrawal to be made today and each subsequent withdrawal at 1-year intervals? (Brett is to have exactly a zero balance in his bank account after the fourth withdrawal.) a. 2,000 + (2,000 0.926) + (2,000 0. 857) + (2,000 0.794) b. 2,0000.7354 c. (2,000 0.926) + (2,000 0.857) + (2,000 0.794) + (2,000 0.735) d. 2,0000.9264