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PFIN 7:STUDENT EDITION-TEXT
7th Edition
ISBN: 9780357033616
Author: Billingsley
Publisher: CENGAGE L
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Question
Chapter 14, Problem 2FPE
a)
Summary Introduction
To calculate: The accumulated amount of Person M in equities.
b)
Summary Introduction
To determine: The amount Person I will get if he invests same as Person M.
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Molly Lincoln, a 25-year-old personal loan officer at First National Bank, understands the importance of starting early when it comes to saving for retirement. She has committed $3,500 per year for her retirement fund and assumes that she'll retire at age 65.
How much will Molly have accumulated when she turns 65 if she invests in equities and earns 8 percent on average? Round your answer to the nearest dollar.
Molly is urging her friend, Isaac Stein, to start his plan right away, too, because he's 45. What would his nest egg amount to if he invested in the same manner as Molly and he, too, retires at age 65? Round your answer to the nearest dollar.
2a. Nest egg at 4%
2b. Nest egg at 8%
Molly Lincoln, a 25-year-old personal loan officer at First National Bank, understands the importance of starting early when it comes to saving for retirement. She has committed $4,000 per year for her retirement fund and assumes that she'll retire at age 65.
How much will Molly have accumulated when she turns 65 if she invests in equities and earns 10 percent on average? Round your answer to the nearest dollar.
Molly is urging her friend, Isaac Stein, to start his plan right away, too, because he's 40. What would his nest egg amount to if he invested in the same manner as Molly and he, too, retires at age 65? Round your answer to the nearest dollar.
2A. Nest egg amount at 4%
2B. Nest egg amount at 10%
Molly Lincoln, a 25-year-old personal loan officer at First National Bank, understands the importance of starting early when it comes to saving for retirement. She has committed $4,000 per year for her retirement fund and assumes that she'll retire at age 65.
a. How much will Molly have accumulated when she turns 65 if she invests in equities and earns 8 percent on average? Round your answer to the nearest dollar.
$
b. Molly is urging her friend, Isaac Stein, to start his plan right away, too, because he's 40. What would his nest egg amount to if he invested in the same manner as Molly and he, too, retires at age 65? Round your answer to the nearest dollar.
Nest egg amount at 6% = $
Nest egg amount at 8% = $
Chapter 14 Solutions
PFIN 7:STUDENT EDITION-TEXT
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