e following information how much saving would you have at retirement if you invest your saving at 9. 5% APR compounded monthly? You have an average income of $59,845 per year over the 31 years of your employment You invest 4% of your wages each month into your savings Your employer matches your contributions to yo
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7.Given the following information how much saving would you have at retirement if you invest your saving at 9. 5% APR compounded monthly? You have an average income of $59,845 per year over the 31 years of your employment You invest 4% of your wages each month into your savings Your employer matches your contributions to your savings
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- 1. Assume that you begin saving 3% of your total income in an employer-provided retirement plan at work. How long will it take for you to be saving at least 20% of your income if your employer provides a 4% wage increase yearly and you save half of each year's increase? 2. Based on your calculations from part a. how much will you be saving (using the end-of- year savings rate) over the next 10 years if you earn $30,000 this year?Assume that you begin saving 3% of your total income in an employer-provided retirement plan at work. Each year, your income increases by 4%. As a result, you increase the percentage of your income you devote to your retirement plan by 2%. How long will it take for you to be saving at least 20% of your income? (Assume no taxes.) Based on your calculations from part a, how much will you be saving (using the end-of-year savings rate) over the next 10 years if you earn $30,000 this year? What is an alternative approach you might recommend for this situation? Why might it be better?Suppose you want to have $ 367733 for retirement in 31 years. Your account earns 4.4 % interest monthly. How much interest will you earn?
- Suppose that you save for retirement by contributing the same amount each month from your 23 rd birthday until your 65th birthday, in a retirement account that pays a steady return of 7.5 percent compounded monthly? Every month you save $100.Suppose you want to have $800,000 for retirement in 25 years. Your account earns 7% interest.a) How much would you need to deposit in the account each month?$b) How much interest will you earn?$You want to receive $8,000 per month in retirement. If you can earn 0.6% return per month and you expect to need the income for 25 years, how much do you need to have in your account at retirement? $1,072,198 $1,189,223 $1,111,746 $567,757
- using excel: How much money must you invest today in order to withdraw the following monthly payments in retirement, $1,000 per month from Year 1 through Year 5, $750 per month from Year 6 through 10? Assume you can earn a rate of return of 8.60%.After retirement, you expect to live for 25 years. You would like to have a $95,000 income each year. The annual interest rate is 9 percent per year. Required: Calculate the amount of savings you have in your retirement account to receive this income. 1 Assume that the payments start on the day of your retirement. 2.Assume that the payments start one year after the retirement.You began saving for retirement at age 25 by contributing $550 per month at an APR of 6% compounded monthly. You plan to retire at the age of 65 and live on your retirement nest egg. 1) How much money is in your account on retirement age at 65? 2) What is the total amount of your deposits over 40 years? 3) Compare that amount of money in your account to the total deposits made over the time period. Explain your observation as a percentage of your contribution to the total balance. 4) After working 40 years, you decide to retire. Suppose you set up your account as perpetuity on retirement paying an APR of 6% compounded monthly. If the value of your nest egg (that is, the present value) is the amount found in question #1, what will be your yearly income and your monthly income (round both to the nearest dollar)? Monthly perpetuity yield = Nest egg times Monthly interest rate
- How much must you deposit each year into your retirement account starting now and continuing through year 10 if you want to be able to withdraw $90,000 per year forever, beginning 29 years from now? Assume the account earns interest at 14% per year. The amount to be deposited is determined to be $________ .a) How much should you deposit at the end of each month into an investment account that pays 9% compounded monthly to have $5 million when you retire in 39 years? b) How much of that $5 million comes from interest? c) If you anticipate living for 28 years on your retirement savings, How much will you be able to withdraw each month if the account continues to pay 9% compounded monthly?You have just made your first $5461 contribution to your retirement account. Assume you earn a return of 8.8 percent per year and make no additional contributions. What will your account be worth when you retire in 45 years?