You start a savings account (Tax Free) on your 20th birthday – You earn 7% interest on the balance – compounded monthly 1. From age 20 – 35 – You deposit $25 monthly 2. From age 35 – 50, you deposit $100 monthly 3. From age 50 – 65 you deposit $200/month a. How much money will you have at age 65? If you were to draw money out – to use it all (while still getting 7% interest) to age 90 – What would your monthly income be?
You start a savings account (Tax Free) on your 20th birthday – You earn 7% interest on the balance – compounded monthly 1. From age 20 – 35 – You deposit $25 monthly 2. From age 35 – 50, you deposit $100 monthly 3. From age 50 – 65 you deposit $200/month a. How much money will you have at age 65? If you were to draw money out – to use it all (while still getting 7% interest) to age 90 – What would your monthly income be?
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 3PA: Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate...
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You start a savings account (Tax Free) on your 20th birthday – You earn 7% interest on the balance – compounded monthly
1. From age 20 – 35 – You deposit $25 monthly
2. From age 35 – 50, you deposit $100 monthly
3. From age 50 – 65 you deposit $200/month a. How much money will you have at age 65?
If you were to draw money out – to use it all (while still getting 7% interest) to age 90 – What would your monthly income be?
It's better to show how this can be solved using Excel. Thank you!
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