You are planning to retire in forty years. You will be spending $30,000 per year, starting at the end of year 41. Assume you will live for 25 years after retirement and the annual interest rate is 7%. How much do you need to save annually before retiring?

Q: If your account earns 9% interest compounded monthly, how much will you need to deposit each month…

A: Present Value of Annuity: It represents the present value of a future stream of annuity cash flows.…

Q: When you retire, you plan to draw $50,000 per year from your retirement accounts, which will be…

A: Here, Annual payment = $50,000 Interest rate = 6% Number of periods = 10 years To Find: PV of…

Q: John and Rosamond want to retire in 15 years and can save $110 every three months. They plan to…

A: Individuals save for retirement using various instruments in order to have a sufficient amount…

Q: Your financial advisor has encouraged you to save $500 each month for retirement. You expect to…

A: Money at the end of 40 Years  = Monthly deposit × 12 months × Years of Deposit = $500 × 12 × 40 =…

Q: If you want to retire with $2,000,000 in 45 years and can earn a rate of 10% with monthly…

A: The retirement amount to be required (FV) is $2,000,000. The maturity period is (NPER) 45 years. The…

Q: You plan to retire in 40 years. To provide for your retirement, you initiate a savings program of…

A: Future value is the expected value of current sum in a future date at a given rate of return. Given:…

Q: A 45-year-old person wants to accumulate $750,000 by age 70. How much will she need to save each…

A: The question is based on the concept of calculation for the future value of annuity payments. An…

Q: compounded

A: Formula to calculate the value in the future: A = P(1+r)^n Where A is the future value P is the…

Q: You would like to have $600,000 when you retire in 40 years. How much should you invest each quarter…

A: Here, To Find: Part a). Amount of deposit each quarter =? Part b). Total money deposited into the…

Q: Assume your goal in life is to retire with one million dollars. How much would you need to save at…

A: To calculate the annual saving amount we will use future value of annuity formula as follows…

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

A: Saving at retirement can be calculated using the future value of annuity. Future value of annuity is…

Q: Bill wants to invest $45,000 for the next 5 years. If the investment is going to generate 8%…

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

Q: You are planning to retire in 25 years time. Immediately after your retirement, you wish to go for a…

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

Q: You deposit $13,000 annually into a life insurance fund for the next 10 years, after which time you…

A: The future value is the value of the amount in future that has to be paid or received at future.

Q: You are planning to save for retirement over the next 30 years. To do this, you will invest $750 per…

A: A study that proves that the future worth of the money is lower than its current value due to…

Q: You are planning to make monthly deposits of $450 into a retirement account that pays 10 percent…

A: The term "annuity" represents a series of equivalent periodic cash flows occurring at equal time…

Q: If you have $325,000 saved for retirement, how many years will it last if you earn an annual…

A: In the given question we need to compute the Number of years for which saving of $325000 will last…

Q: A couple will retire in 50 years; they plan to spend about $30,000 a year in retirement, which…

A: Time value of money is the concept widely followed by the management and many companies to determine…

Q: You are expecting to retire in 28-years and you want to retire with $10,000,000. How much you must…

A: Given information: Future value is $10,000,000 Present value is $122,000 Number of years is 28…

Q: Today, you retire with $1,100,000 and you want to ensure that you can withdraw $1250 per week (52…

A: The question gives the following information:

Q: what is the value of your retirement plan after the 40 years?

A: A retirement plan is the planning for retirement. It is an investment plan, whereby the investor…

Q: You would like to save $250,000 for retirement. If you are planning to retire 30 years from now, how…

A: Future value of the retirement account should be (FV) = $250000 Number of periods of month payments…

Q: Suppose you wish to retire 30 years from today .You have determined that you would need $75,000…

A: The question is to find the present value of expected cash flow made at regular intervals. The…

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: You plan to retire in exactly 20 years' time and expect to live for 30 years after you retire. In…

A: Annuity is the concept of accepting or depositing equal amount at equal time interval over a period…

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: 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 would like to have $550,000 when you retire in 40 years. How much should you invest each quarter…

A: Required Amount at retirement is $550,000 Time period is 40 years Interest rate is 6.4% Compounded…

Q: John and Rosamond want to retire in 10 years and can save $130 every three months. They plan to…

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

Q: You are planning to retire in 20 years, and your goal is to accumulate a sum of $1 million in your…

A: In this question we require to compute the money to be invested each year to have $1 million in 20…

Q: You want to accumulate $1,250,000 prior to retirement.  If you can earn 10% per yr. and have the…

A: RATE (10%/12) 0.833% TIME PERIOD (30 years * 12 months) 360 PRESENT VALUE $0 FUTURE VALUE…

Q: If you have $375,000 saved for retirement, how many years will it last if you earn an annual…

A: Perpetuity can be defined as the series of fixed cashflow in equal interval for an indefinite…

Q: In planning for your retirement, you have decided that you would like to be able to withdraw $60,000…

A: When a payment is done repeatedly for a specific period of time it is referred to as Annuity.…

Q: You have finished your time at Kelley and need to start thinking about retirement. You plan on…

A: Given: amount required after retirement at every six months = $75,000 Period of service = 30 years…

Q: save

A: Introduction: The amount to be deposited every year is nothing but the present value which is…

Q: a) You are planning to retire in 25 years time. Immediately after your retirement, you wish to go…

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

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: If you have $125,000 saved for retirement, how many months will it last if you earn an annual…

A: GIVEN, PV = $125000 R=5.5% M=12 A= $1400 Beginning of month withdrawals

Q: Suppose you are 30 years old and would like to retire at age 60. Moreover, you would like to have a…

A: Present Value of annuity = P* [{(1+r)^n-1}/r] Where, Present Value of annuity = 350000 P = Annuity…

Q: You are going to receive a payment of $80 at the end of each year for the next 20 years. If you…

A: The future value of the annuity is the total value of all the payments which is occurred regularly…

Q: You are offered the opportunity to put some money away for retirement. You will receive 10 annual…

A: Here, Annual Payments Received is $5000 Interest Rate is 12% Monthly Interest Rate is 12% / 12 = 1%…

Q: Assume that you contribute $150 per month to a retirement plan for 15 years. Then you are able to…

A: This question provides that $ 150 per month for 15 years and increases the $ 350 per month for next…

Q: You decide to replace your income of $70,000 a year in retirement for 30 years. How much do you need…

A: Interest rate (r)= 3% Compounding (k)= annually Time period (n)= 30 years Retirement Income (d)=…

Q: You are saving for your retirement. You have decided that one year from today you will deposit…

A: First payment, A = 5% x Annual salary a year later = 5% x 90,000 x (1 + 2%) = $ 4,590.00 Growth rate…

Q: Suppose you wish to retire forty years from today. You determine that you need RM50,000 per year…

A: An Annual payment is the equal payment that is paid or received at the end of the year.

Q: When you retire 40 years from now you plan to make 10 annual withdrawals from your savings account…

A: PV is the current worth of cash flows that are expected to happen in the future.

Q: You expect to retire in 25 years. After you retire, you want to be able to withdraw $3000 dollars…

A: Present Value:  The present value is the value of cash flow stream or the fixed lump sum amount at…