You want to begin saving for your retirement. You plan to contribute $12,000 to the account at the end of this year. You anticipate you will be able to increase your annual contributions by 3% each year for the next 45 years. If your expected annual return is 8%, how much do you expect to have in your retirement account when you retire in 45 years?

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: Assume that you are 30 years old today, and that you are planning on retirement at age 65. Your…

A: First contribution amount = Current Salary * Contribution % = 41000 * 8% = $3280

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: You are 20 years old and decide to start saving for your retirement. You plan to save $5,500 at the…

A: Question is based on the concept of Annuity

Q: Assume that you are 30 years old today and that you are planning on retirement at age 65. Your…

A: Given: Particulars Amount Years 30 Retirement age 65 Current salary $45,000 Growth rate…

Q: You will need to deposit $_______ each quarter.

A: Future Value of Annuity: It is computed by compounding the present stream of annuity cash flows…

Q: You and your wife are making plans for retirement. you Olán on living 25 years after you retire and…

A: Annual amount required = 100000 years to live =25 years Number of years to withdraw(n) = 25-1 =  24…

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 desire to have $80,000 for a down payment for a house in 7 years, what amount would you need…

A: Note:  We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: If you make annual payments into a retirement plan during your working life, how much will you need…

A: Find the present value of the annuity for retirement funds at t=25. (PV Function) The above amount…

Q: You are 20 years old and decide to start saving for your retirement. You plan to save $6,000 at the…

A: Here we will use the concepts and formulas of annuity. Annuity is a periodic amount of money being…

Q: Calculate how much you will have to save each month between now and then to have $300,000 in your…

A: Calculate the monthly saved amount as follows:

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

A: Solution-PV of growing annuityi=0.04r=0.12

Q: You have just made your first $4,300 contribution to your retirement account. Assume you earn a…

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

Q: You plan to retire at the age of 65 and be able to live for 30 years paying yourself $80,000 per…

A: Time period after retirement is 30 years. Required Retirement income is $80,000 per year. Interest…

Q: You want to retire soon. When you finally retire, you want your investments to provide you with an…

A: Retirement needs: 150,00 means 15,000 15,000 each year for next 40 years N = 40 Annual Interest…

Q: You are planning to retire in forty years. You will be spending $30,000 per year, starting at the…

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

Q: You want to retire in 30 years with $2,500,000 in your retirement account, how much do you need to…

A: Future value required (FV) = $ 2,500,000 Interest rate (r) = 8% Number of annual payments (n) = 30

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

A: Annual deposit = $ 5000 Annual interest rate = 5% Number of annual deposits = 27

Q: As part of your financial planning and to supplement your retirement, you decided to save $3000 at…

A: Future value is the expected value of the current amount at a future date at a given specific rate…

Q: Today is your 22nd birthday and you have just started your first job out of college. You decide that…

A: The compounded value of each payment made over common interval of time is called an annuity and its…

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: Today is your 23rd birthday.  Your aunt just gave you $1,000.  You have used the money to open up a…

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

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: 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 want to begin saving for your retirement. You plan to contribute $12,000 to the account at the…

A:

Q: How much will you have in accumulated savings 20 years from now if you deposit $2,000 at the end of…

A: Period = 20 Years Year end deposit = $ 2000 Growth rate = 2% Interest rate = 5%

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

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

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 planning to save for your retirement during the next 30 years. You want to be able to…

A: EAR = (1+apr/n)^n - 1 EAR = (1+8%/12)^12 - 1 = 8.299951% Now let us find out the present value of…

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

A: The present value is calculated by multiplying all future cash flows by present value factor using…

Q: You have just retired with savings of $5 million. If you expect to live for 49 years and to earn 12%…

A: Present value = Annuity * PVAF ( Rate, Years )

Q: You want to supplement your retirement income through a retirement account. You have 15 years left…

A: First withdrawl amount is $15,000 Growth rate is 5% Starting year of Withdrawal is 16th Ending Year…

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 want to begin saving for your retirement. You plan to contribute $12,000 to the account at the…

A: Since you have asked multiple questions, we will solve the first question for you. Please resubmit…

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 are 35 years old and would like to retire at age 65. Furthermore, you would like to have…

A: Future value is amount that an investment will become after a certain period of time. It will…

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…

Q: You are planning on retiring for retirement 34 years from now. You plan to invest $4,200 per year…

A: Future value of annuity (FVA) is the value of stream of recurring cashflow at regular interval…

Amortized Loans

The term "amortization" refers to spreading the value of a loan or a debt over a series of regular payments or installments comprising of both the principal and interest amount. It generally involves the process where in the value of a loan or an intangible asset is written down over its maturity period.