Your client's 401K account has an initial balance of $6,900 and has monthly contributions of $500. It earns 6.1% annual interest, compounded monthly, for 37 years. At the age of retirement, your client will "annuitize" their 401K balance and take monthly payments for 31 years. Their investments during retirement will earn 4.1% per year, with monthly compounding. Inflation is 3% annually. What is the value of your client's monthly payments in real dollars? Answer = (Round to the nearest penny)

Q: Luis has $160,000 in his retirement account at his present company. Because he is assuming a…

A: Given: Amount in retirement account = $160,000 Annual payment = $2,000 Years =22 Interest rate = 8%

Q: If you deposit $250 each month into an individual retirment account that earns 4.8% interest…

A:

Q: You have $42,180.53 in a brokerage account, and you plan to deposit an additional $5,000 at the end…

A: Given: PV = Present value = $42,180.53 PMT = Annual payment = $5,000 Future value value = $250,000…

Q: You have $42,180.53 in a brokerage account, and you plan to deposit an additional $5,000 at the end…

A: The future value of annuity helps an investor or an individual to know the future value of their…

Q: At the end of each quarter, a life insurance client deposits Ph 6,176 for 5 years. If money is worth…

A: Quarterly deposit (P) = Ph 6,176 Interest rate = 5.3% Quarterly interest rate (r) = 5.3%/4 = 1.325%…

Q: Harry Morgan plans to make 30 quarterly deposits of P200 into a savings account. The first deposit…

A: Solved using Financial Calculator  N= 30 (7.5 * 4 = 30) I/Y = 8/4 = 2 PMT = 200 CPT FV = 8113.62

Q: To supplement your planned retirement in exactly 42 years, you estimate that you need to accumulate…

A: A concept through which it is studied that the current worth of money is higher than its future…

Q: Your employer automatically puts 5 percent of your salary into a 401(k) retirement account each…

A: FV is the future worth of cash flows that have occurred in the past or present.

Q: Suppose you are paid $2,000 per month and your employer's 40100 matches your contributions by 10% up…

A: Here, Monthly Pay is $2,000 Maximum Contribution in 401K is 15% of Monthly pay Period of working is…

Q: An insurance company offers a retirement annuity that pays 100,000 per year for 15 years, gorwing at…

A: An Annuity is a stream of regular periodic payments made or received for a specified period of time…

Q: A man is planning to retire in 20 years Money can be deposited at 6% interest compounded monthly,…

A: For this we need to calculate compounded annually rate, i=(1+(r/m))^(m/q)-1 =(1+(0.06/12))^(12/1)-1…

Q: A depositor puts $30,000 in a savings account that pays 4% interest, compounded quarterly. Equal…

A: A perpetuity is a security that pays for an infinite amount of time. In finance, perpetuity is a…

Q: Starting at age 25, you deposit $2,000 a year into an IRA account. Treat the yearly deposits into…

A:

Q: You plan to prepare for retirement by making monthly contributions $1,500 to a savings account that…

A: Accumulated savings is defined as the savings, which amount for putting the back or investment each…

Q: Your employer offers a 401(k) plan with a 17% match, and you set a goal of retiring in 35 years with…

A: Given: Value today = $1.1 million or $1100000 Inflation rate = 1.5% Annual rate = 1.2% Number of…

Q: You deposit $200 each year in an account for 15 years and then $400 each year in the same account…

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

Q: If I would like to have $250,000 in my savings account after making contributions for 30 years, what…

A: Present Value = Monthly Contributions * PVAF ( Monthly Rate, number of Months )

Q: Your employer offers a 401(k) plan with a 16% match, and you set a goal of retiring in 31 years with…

A: 401(k) is a type of retirement plan which allows investor to accumulate funds for retirement by…

Q: As part of your retirement plan, you have decided to deposit $6,000 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 have just deposited $9,500 into an account that promises to pay you an annual interest rate of…

A: GOAL (FV) 27940 INTEREST RATE 6.20% YEARS 8+12=20 PMT 0 PV 9500

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: A man is planning to retire in 20 years. He can deposit money for his retirement at 8% compounded…

A:

Q: You are to make monthly deposits of $500 into a retirement account that pays 10.3 percent interest…

A: A monthly deposit (P) of $500 is made for a period (n) of 420 (35*12=420) at an interest rate ( r )…

Q: You initially deposit $3,000 in to a savings account for 5 years, paying 6% compounded annually.…

A: We will first establish the timelines  We deposit $3,000 for 5 years at an interest of 6%. t0 is…

Q: You have €42,180.53 in a brokerage account, and you plan to deposit an additional €5,000 at the end…

A: Working note:

Q: Suppose you are paid $2400 per month and your employer's 401(k) matches your contributions by 50% up…

A: The 401k contributions are the contribution made by the employee and employer for the retirement of…

Q: You have begun a 401k at work, contributing $1,000 at the end of each year. How much is your account…

A: The worth of an account in the future can be calculated using the FV function in Excel.

Q: You want to be able to withdraw $1, 500 from your account each month for 20 years after you retire…

A: The given problem can be solved using PV and PMT  function in excel. PV function computes current…

Q: You deposit $350 each month into an account earning 3% interest compounded monthly. a) How much will…

A: Given, Deposit amount (C) = $350 each month Timer period (n) = 35 years*12 = 420 interest rate (i) =…

Q: A retiree invests $8,000 in a savings plan that pays 6% per year. What will the account balance be…

A: The future value of money is considered as the sum of money received after a period of time at a…

Q: Your beginning salary is $70,000. You deposit 12% at the end of each year in a savings account that…

A: Given information: Beginning salary is $70,000 Interest rate is 3% Initial payment of 12% Salary…

Q: You deposit $1,000 in an account at the Lifelong Trust Savings and Loan that pays 2% interest…

A: Future value (FV) refers to a means of estimating how much an asset or cash's present value (PV)…

Q: deposits

A: Introduction: The term annuity refers to series of payments which are made at intervals. Examples of…

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: On December 31, Son-Nan Chen borrowed $100,000, agreeing to repay this sum in 20 equal annual…

A: The PMT function is a type of financial function which helps to determine the total monthly payment…

Q: You have $34,256.85 in a brokerage account, and you plan to deposit an additional $5,000 at the end…

A: Using NPER function in excel, this can be ascertained and the following inputs are used for…

Q: An individual contributes $200 per month to a 401(k) retirement account. The account earns interest…

A: Monthly Contribution $200 Annual Interest Rate 8% Period  35 Years Because of Compounding…

Q: A.) A man has deposited $50 000 in a retirement income plan with a local bank. This bank pays 9% per…

A: The requirement is to find the annual withdrawal. This amount will be the same for all 12 years. The…

Q: Another client at ZBX Fin Planning currently has $95,000 in their retirement account that is…

A: Current Amount in account is $95,000 Deposits per month is $950 Interest rate is 10.56% APR…

Q: Assume you put $400 per month into a retirement account for 14 years, and the account has an APR of…

A: (Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the…

Q: You are working for a finance firm and a client comes to you and wants to know how much money they…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: If a student makes monthly deposits of $1,000 into an account with a nominal annual interest rate of…

A: Monthly deposit = 1,000 Annual Interest Rate  = 4.5% compounded Quarterly, this means monthly…

Q: You turned 22 today and you want to retire on your 58th birthday.    Starting with the day of your…

A: Present value is defined as the current value of future sum of the cash flow stream or money, which…

Q: A person plans to make a series of equal quarterly deposits of $1,500 each into a savings account,…

A: Equal Quaterly deposits are of $1,500 Interest rate is 6.5% compounded daily Time period is 10 years…

Q: At the end of each quarter, a life insurance client deposits Ph 6,366 for 5 years. If money is worth…

A: Solution:- When an equal amount is deposited each period at end of period, it is called ordinary…

Market Efficiency

Market efficiency refers to the market's ability to provide investors with all available information about investment options for buying and selling securities. Market efficiency reflects the true value of securities without undervaluing or overvaluing them. When the quality and quantity of information increase, the market becomes more efficient, allowing it to reduce arbitrage and obtain higher market returns from investment. In a well-functioning market, everyone receives all information completely and immediately at no cost. It opens up a plethora of opportunities for investors to access various investment options.