At age 20 when you graduate, you start saving for retirement. If your investment plan pays an APR of 4.5% and you want to have $5 million when you retire in 45 years, how much should you deposit monthly?
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At age 20 when you graduate, you start saving for retirement. If your investment plan pays an APR of 4.5% and you want to have $5 million when you retire in 45 years, how much should you deposit monthly?
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- You want to be able to withdraw $50,000 from your account each year for 20 years after you retire. You expect to retire in 25 years. If your account earns 8% interest, how much will you need to deposit each year until retirement to achieve your retirement goals?Use the savings plan formula to answer the following question. At age 45, you start saving for retirement. If your investment plan pays an APR of 7% and you want to have $1.3 million when you retire in 20 years, how much should you deposit monthly?You want to be able to withdraw $30,000 from your account each year for 25 years after you retire.You expect to retire in 20 years.If your account earns 5% interest, how much will you need to deposit each year until retirement to achieve your retirement goals?
- At age 35 you start saving for retirement. If your investment plan pays an APR of 6% and you want to have $2 million when you retire in 30 years, how much should you deposit monthly?At age 43, you start saving for retirement. If your investment plan pays an APR of5%and you want to have$0.9million when you retire in22 years, how much should you deposit monthly? You should invest$ each month.You are 25 years old and decide to start saving for your retirement. You plan to save $5000 at the end of each year (so the first deposit will be one year from now) and will make the last deposit when you retire at age 65. Suppose you earn 8% per year on your retirement savings. How much will you have saved for retirement? How much will you have saved if you wait until age 35 to start saving (again, with your first deposit at the end of the year)?
- You are 20 years old and decide to start saving for your retirement. You plan to save $5,500 at the end of each year (so the first deposit will be one year from now), and will make the last deposit when you retire at age 66. Suppose you earn 7% per year on your retirement savings. a. How.much will you have saved for retirement? b. How much will you have saved if you wait until age 36 to start saving (again, with your first deposit at the end of the year)?You are 20 years old and decide to start saving for your retirement. You plan to save $6,000 at the end of each year (so the first deposit will be one year from now), and will make the last deposit when you retire at age 68. Suppose you earn 5% per year on your retirement savings. a. How much will you have saved for retirement? b. How much will you have saved if you wait until age 32 to start saving (again, with your first deposit at the end of the year)? a. How much will you have saved for retirement? The amount that you will have accumulated for retirement is $ (Round to the nearest dollar.) b. How much will you have saved if you wait until age 32 to start saving (again, with your first deposit at the end of the year)? The amount that you will have accumulated for retirement is $ (Round to the nearest dollar.)You decide to replace your income of $70,000 a year in retirement for 30 years. How much do you need in your retirement account the day you retire to make that happen, assuming a real interest rate of 3%?
- After graduation from university, you start working and you want to plan for your retirement. You will be retiring in 25 years and during your retirement, you plan to spend USD 20,000 per year. You expect your retirement to last 30 years. You believe you can earn 8% on your retirement savings. If you make annual payments into a retirement plan during your working life, how much will you need to save each year to reach your retirement goal? (You will make the first payment at the end of the year).You are planning to invest $1,000 in an account earning 12% per year for retirement. a. If you put the $1,000 in an account at age 23, and withdraw it 45 years later, how much will you have? b. If you wait 10 years before making the deposit, so that it stays in the account for only 35 years, how much will you have at the end?You have decided that in order to have a comfortable retirement you will need to replace $65,000 in income each year in retirement. Assuming you will need 20 years of retirement income and an inflation rate of 3.5%, how much will you need to have saved up in order to meet your goal on the day you retire?