Shane is about to have his twenty-fifth birthday. He has set a goal of retiring at age 55 with $700,000 in an RRSP. For planning purposes he is assuming that his RRSP will earn 8% compounded annually. (Do not round intermediate calculations and round your final answer to 2 decimal places.) a. What contribution on each birthday from age 25 to 54 inclusive will be required to accumulate the desired amount in his RRSP? PMT $ b. If he waits five years before starting his RRSP, what contribution on each birthday from age 30 to 54 inclusive will be required to accumulate the target amount? PMT $

Shane is about to have his twenty-fifth birthday. He has set a goal of retiring at age 55 with $700,000 in an RRSP. For planning purposes he is assuming that his RRSP will earn 8% compounded annually. (Do not round intermediate calculations and round your final answer to 2 decimal places.) a. What contribution on each birthday from age 25 to 54 inclusive will be required to accumulate the desired amount in his RRSP? PMT $ b. If he waits five years before starting his RRSP, what contribution on each birthday from age 30 to 54 inclusive will be required to accumulate the target amount? PMT $

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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Leonard wants to have $400,000 in his RRSP when he retires in 31 years. How much must he deposit at the end of each month into the RRSP in order to reach his goal? Assume that he can earn j12=4.8% on his money. Your Answer: Answer
Alec, Daniel, William, and Stephen decide today to save for retirement. Each person wants to retire by age 68 and puts $9,300 into an account earning 8% compounded annually. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided. Round your answers to 2 decimal places.) Required:Calculate how much each person will have accumulated by the age of 68. Person Age Initial Investment Accumulated Investment by Retirement (age 68) Alec 58 $9,300 Daniel 48 9,300 William 38 9,300 Stephen 28 9,300
Alec, Daniel, William, and Stephen decide today to save for retirement. Each person wants to retire by age 60 and puts $9,700 into an account earning 10% compounded annually. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use tables, Excel, or a financial calculator. Round your answers to 2 decimal places.) Required: Calculate how much each person will have accumulated by the age of 60.
You have just made your first $4,500 contribution to your individual retirement account. Assume you earn an annual return of 10.85 percent and make no additional contributions. a. What will your account be worth when you retire in 43 years? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. b. What if you wait 10 years before contributing? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. a. Account value if you start now b. Account value if you wait 10 years
Willie would like to have $500,000 set aside at retirement. He would like to make annual deposits into his retirement fund, and expects to retire in 30 years. In order to meet his goal, how much must he deposit each year if he can earn a 6% return? N =_____ I/YR =_____ PV =________ PMT =_________ FV = ____________
Need answer with explaination please. Part- A) A senior engineer nearing retirement, which he plans to do on his 65th birthday, expects to be able to live from his retirement account by drawing $75,000 per year until his 85th birthday. He also hopes to be able to make a donation of $ 50,000 to his favorite charity on his 85th birthday. His retirement account is invested at 4.5% per year. How much money does ho need to have accumulated in his retirement account to be able to meet these goals? Part - B) Assuming that the engineer described above had worked for 35 years. how much money should he have contributed annually to his pension plan each of these years in order to accumulate the amount need for retirement ?
A couple thinking about retirement decide to put aside $3,900 each year in a savings plan that earns 8% interest. In 5 years they will receive a gift of $19,000 that also can be invested. a. How much money will they have accumulated 30 years from now? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. b. If their goal is to retire with $890,000 of savings, how much extra do they need to save every year? Note: Do not round intermediate calculations. Round your answer to 2 decimal places need both parts,,,,attempt if you will solve both parts....thanks
Jonathan is planning to retire on January 1, 2024. his goal is to have enough money in his savings account to be able to withdraw $2,000 per month beginning one month after retirement and continuing for 25 years after retirement. He earns an annual effective rate of interest of 10% on his account. Determine the minimum amount needed in his savings account on January 1, 2024, to accomplish his goal. Possible Answers $235,000 but $255,000
1a. In 1895, the winner of a competition was paid $110. In 2006, the winner's prize was$70,000. What will the winner's prize be in 2040 if the prize continues increasing at the samerate? 1b. You have just made a $1,500 contribution to your individual retirement account. Assumeyou earn a 12 percent rate of return and make no additional contributions. How much more willyour account be worth when you retire in 25 years than it would be if you waited another 10years before making this contribution?
A man plans to retire in 15 years. While working, he intends to deposit money each month into his retirement fund which earns 6.6 % interest per year, compounded monthly. He desires a million dollars in his retirement fund at the time he retires. Over the next 15 years, what amount should he deposit monthly into his retirement fund in order to accomplish his goal? Give the answer to 2 decimal places, and do not use the $ sign in the answer box. The monthly deposit amount is Blank 1. Calculate the answer by read surrounding text. dollars.
Alec, Daniel, William, and Stephen decide today to save for retirement. Each person wants to retire by age 65 and puts $11,000 into an account earning 10% compounded annually. Person Age Initial Investment Accumulated Investmentby Retirement (age 65) Alec Daniel William Stephen 55 45 35 25 $11,000 11,000 11,000 11,000 $_________________ $_________________ $_________________ $_________________ Required:Calculate how much each person will have accumulated by the age of 65.
Your grandfather is retiring at the end of next year. He would like to ensure that his heirs receive payments of $11,600 a year forever, starting when he retires. If he can earn 12.0 percent annually, how much does your grandfather need to invest to produce the desired cash flow? (Round answer to 2 decimal places e.g. 15.25.)

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