You deposit $5000 each year into your retirement account, starting in one year. If these funds earn an average of 5% per year over the 27 years until your retirement, what will be the value of your retirement account upon retirement? Your Answer:

Q: You want to be able to withdraw $40,000 from your account each year for 15 years after you retire.…

A: The Present Value of this withdrawal is computed as follows: Withdrawal = $40,000 Time period = 15…

Q: Approximately how much must be saved for retirement in order to withdraw $100,000 per year for the…

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

Q: To supplement your planned retirement, you estimate that you need to accumulate R 220, 000 in 42…

A: Formulas: Future value = Annual payment *((1+rate)^years-1)/Rate

Q: You deposit $500 today in a savings account that pays 6% interest, compounded annually. How much…

A: Deposit amount = $ 500 Annual interest rate = 6% Period = 40 Years

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) How much is in your account on retirement? b) Suppose you set up your account as a perpetuity on…

A: “Since you have posted a question with multiple subparts, we will solve the first three subparts for…

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

A: The monthly deposit is the amount that is paid every month until the maturity of the period.

Q: Using the Time Value of Money for Retirement Planning. Carla Lopez deposits $3,400 a year into her…

A: Given: Annual deposit = $3,400 Interest rate = 9% Number of years = 40 Value of the retirement…

Q: You currently have $250,000 in your retirement account. What equal annual amount must you deposit…

A: Equal annual deposits into an account for a fixed number of times is called annuity. The future…

Q: You want to be able to withdraw $50,000 from your account each year for 20 years after you retire.…

A: Here we will first have to find the present value of annual withdrawals of $50,000 for 20 years.

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

A: Annual payment “PMT” = 5000 Number of payments “n” = 10 Interest rate = 12% compounded  monthly…

Q: As part of your retirement plan, you have decided to deposit $9,000 at the beginning of each year…

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

Q: You want to have $2,000,000 in your savings account seven years from now, and you're prepared to…

A: Given: Future Value of investment "FV" = $2000000 Number of payments "n" = 7 Interest rate "r" =…

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: If you deposit $700 every year for the next 5 years, with first deposit to be made today and all…

A: Amount deposit per year = $700 Time period = 5 Years Interest Rate = 3.76%

Q: Today is your birthday and you decide to start saving for your retirement. You will retire on your…

A: Solution- Amount to be deposited every year=$700000Interest for 1 year…

Q: you deposit $1,000 each year into an account earning 3% interest compounded annually. How much will…

A: Time value Value received today by an individual is of more worth than receiving the exact value in…

Q: You deposit $4000 into a retirement account each year. The account pays 8℅ interest. How much will…

A: Annual deposit (A) = $4000 Interest rate (r) = 0.08 Period (p) = 25 years Amount in 25 years (P25) =…

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: You deposit $825 today in a savings account that pays 3.5% interest, compounded annually. How much…

A: Future value is the value of current value at a specified interest rate for given period. The…

Q: You estimate you need to supplement your social security payments with monthly withdrawals of…

A: The question is based on the concept present value of annuity payment Formula as, Pv=pmt*1-(1+r)-nr

Q: You are going to receive a payment at the end of each year for the next 12 years. If you invest each…

A: The future Value of an investment is an estimation of receiving some amount after some period of…

Q: You want to be able to withdraw $35,000 from your account each year for 15 years after you retire.…

A: Given, Amount required each year after requirement us $35000. term of payment is 15 years Rate of…

Q: If you deposit $2,000 into an account at the end of each of the next 40 years, at 4.5% interest, how…

A: It can be solved using  In excel FV (rate, nper, pmt, [Pv], [type]) Rate The interest rate for the…

Q: You want to be able to withdraw $45,000 from your account each year for 20 years after you retire.…

A: After retirement: payment amount = $45000 number of year = 20 rate of interest = 7%   Before…

Q: You plan to make annual deposits of $5,000 per year at the beginning of each year into your…

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

Q: You would like to have enough money saved to receive a growing annuity for 25 years, growing at a…

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

Q: Christine would like to know the value of their savings, assuming that they deposit $750 each month…

A: Monthly deposit (P) = $750 Growth rate (g) = 3% Period = 25 Years Number of deposits (n) = 25*12 =…

Q: You want to be able to withdraw $50,000 from your account each year for 25 years after you retire.…

A: Here, Annual amount to withdraw = $50,000 Time in years after retirement = 25 years Time to…

Q: You plan to place $1,200 per year into a Roth IRA. You expect to earn 6% APR and you will place this…

A: Given, The yearly deposit is $1,200 Rate is 6% Term of investment is 35

Q: what will be the amount in the account upon your retirement?

A: Future value of the retirement account is the total value that an individual will be able to…

Q: You would like to have enough money saved to receive a $90,000 per year perpetuity after retirement.…

A: Given, The cashflows is $90,000 The rate of interest is 8%

Q: You deposit $5000 each year into your retirement account, starting in one year. If these funds earn…

A: Answer:   Following information are given:   Annual deposit = $5000 Rate = 5% Time ( no of periods)…

Q: Determine the size of your investment account 23 years from now (when you plan to retire) if you…

A: Future value: It is the value of the current asset, depending on the assumed rate of the growth, at…

Q: Suppose you invest in an annuity that pays 5% interest, compounded semiannually. How much will you…

A: Formula used as follows: S=R1+in-1iS=Future valuei=Interest rate per periodn=Number of…

Q: Harry plans to deposit $3,000 at the beginning of each year into a savings account earning 2.75%…

A: The amount which is deposited at the beginning of each period is called as annuity due. The period…

Q: As part of your retirement plan, you have decided to deposit $6,000 at the beginning of each year…

A: Answer 1) Calculation of worth of account after 10 years if the annual rate of interest is 3% Amount…

Q: You want to be able to withdraw $30,000 from your account each year for 30 years after you retire.…

A: The amount of the deposit can be calculated by using the present value and future value of annuity…

Q: You now know the power of compound starting to save for your retirement as early as possible. You…

A: In arithmetic growing annuity amount each year increase by fixed amount but this amount grow much…

Q: You plan to invest $2, 000 each year in a retirement account for the next 20 years. Calculate the…

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

Q: It is estimated that you will pay about $80,000 into the Social Security system (FICA) over your…

A: The future value is the value of the equal deposits at the end of the deposit period. The…

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: You planned to retire after 20 years your goal is to create a fund that will allow you to  receive…

A: first we will calculate the present value of the retirement fund and then use the amount as future…

Q: You want to be able to withdraw $35,000 from your account each year for 20 years after you retire.…

A: The concept of the time value of money states that the current worth of money is more than its value…