Today is Derek's 25th birthday. Derek has been advised that he needs to have $3,863,156.00 in his retirement account the day he turns 65. He estimates his retirement account will pay 9.00% interest. Assume he chooses not to deposit anything today. Rather he chooses to make annual deposits into the retirement account starting on his 27.00th birthday and ending on his 65th birthday. How much must those deposits he?

Today is Derek's 25th birthday. Derek has been advised that he needs to have $3,863,156.00 in his retirement account the day he turns 65. He estimates his retirement account will pay 9.00% interest. Assume he chooses not to deposit anything today. Rather he chooses to make annual deposits into the retirement account starting on his 27.00th birthday and ending on his 65th birthday. How much must those deposits he?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Derek can deposit $19,305.00 on each birthday beginning with his 26.00th and ending with his 69.00th. What will the rate on the retirement account need to be for him to have $3,825,432.00 in it when he retires?
Today is Derek's 25th birthday. Derek has been advised that he needs to have $3,865,014.00 in his retirement account the day he turns 65. He estimates his retirement account will pay 7.00% interest. Assume he chooses not to deposit anything today. Rather he chooses to make annual deposits into the retirement account starting on his 30.00th birthday and ending on his 65th birthday. How much must those deposits be? Submit Answer format: Currency: Round to: 2 decimal places. unanswered not_submitted Attempts Remaining: Infinity #5 Derek can deposit $11,000 on each birthday beginning with his 26th and ending with his 65th. What will the rate on the retirement account need to be for him to have $3,000,000 in it when he retires on his 65th birthday? Submit Answer format: Percentage Round to: 4 decimal places (Example: 9.2434%, % sign required. Will accept decimal format rounded to 6 decimal places (ex: 0.092434))
#16 Today is Derek's 25th birthday. Derek has been advised that he needs to have $2,993,861.00 in his retirement account the day he turns 65. He estimates his retirement account will pay 7.00% interest. Assume he chooses not to deposit anything today. Rather he chooses to make annual deposits into the retirement account starting on his 29.00th birthday and ending on his 65th birthday. How much must those deposits be? Submit Answer format: Currency: Round to: 2 decimal places. unanswered not_submitted Attempts Remaining: Infinity
In 2012 the maximum Social Security deposit by an individual was $8,386.75. Suppose you are 27 and make a deposit of this amount into an account at the end of each year. How much would you have (to the nearest dollar) when you retire if the account pays 2% compounded annually and you retire at age 65?_____$
If Liam wants to withdraw $19,626.57 every month from his retirement account that pays 7.67%/year for 25 years after he retires. How much should he deposit EVERY MONTH for his 43 years of employment if he starts with an original deposit of $5,357,392.19.
Parker is doing some retirement planning. He would like to have a retirement income of $3,000 at the beginning of each month during his retirement. He expects his retirement to last for 20 years and that his fund will earn j12-3.6% during retirement. a) How much money must Parker have in his account on the day he retires in order to fund his retirement? b) How much must Parker deposit at the end of each month into his retirement fund from now until retirement in order to have enough to fund his retirement goal? Assume that he already has $30,000 in his account and that he will retire in 30 years
Bill started saving for his retirement when he was 37. Each month he deposited $100.00 into an annuity that earns 3.2% compounded monthly. Assume the interest rate stays the same while the account is open. You may round your answers to the nearest cent. How much will be in the account when Bill turns 70? Future Value $ Of this future account balance, how much comes from Bill's deposits? Total Deposited $ How much interest, in total, will he earn? Interest
8) Bozo decides to start saving money. every month he deposits $200 into an account which pays 4% monthly. If Bozo’s first deposit is on May 1, 2021, then how much is in the account immediately after his deposit on November 1, 2027?
EZ Leifer plans to retire at the age of 65 and believes he will live to be 90. EZ wants to receive an annual retirement payment of $50,000 at the beginning of each year. He seta a retirement account that is estimated to earn 6 percent annually. a. How much money will EZ have in the account when he reached 65 years old? b. EZ is currently 29 years of age. How much must he invest in this account at the end of each year for the next 36 years to have the required amount in his account at age 65?
B. John is currently 25 years old. He has $10,000 saved up and wishes to deposit this into a savings account which pays him J12 = 6% p.a. He also wishes to deposit $X every month into that account so that when he retires at 55, he can withdraw $2000 every month end to support his retirement. He expects to live up till 70 years. How much should he deposit every month into his account? Draw a timeline for this question and solve? Timeline is compulsory.
At age 22, someone sets up an IRA (individual retirement account) with an APR of 6%. At the end of each month he deposits $55 in the account. How much will the IRA contain when he retires at age 65? Compare that amount to the total deposits made over the time period? After retirement the IRA will contain $? The total deposits made over time are $?
DeAndre starts saving for retirement when he starts his first job at age 24. He deposits $2400 into a retirement account earning 3.2% interest every quarter until he turns 61. If he retires at age 61, what is his retirement account balance at the time he retires?

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