Vernon has nothing saved for retirement. He wants to receive $46,000 per year for 5 years during retirement. The first of these payments will be received in 5years. Vernon can earn a return of 15.30 percent per year. How much does Vernon need to save each year for 5 years to have exactly enough to meet hisretirement goal if he makes his first annual savings contribution in 1 year and all savings contributions are equal?$19,578.62 (plus or minus 10 dollars)$26,027.99 (plus or minus 10 dollars)$22,574.14 (plus or minus 10 dollars)$20,014.80 (plus or minus 10 dollars)none of the answers are within 10 dollars of the correct answer

Answered: Image /qna-images/answer/14829cc2-c7b4-4ae1-9c49-8edc9fbb2ef4.jpg

Answered: Vernon has nothing saved for…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 35P

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Marc has nothing saved for retirement. He wants to receive $46,000.00 per year for 5 years during retirement. The first of these payments will be received in 7 years. Marc can earn a return of 9.38 percent per year. How much does Marc need to save each year for 6 years to have exactly enough to meet his retirement goal if he makes his first annual savings contribution in 1 year and all savings contributions are equal? O $21,324.88 (plus or minus 10 dollars) O $25,513.05 (plus or minus 10 dollars) O $23,325.15 (plus or minus 10 dollars) O $20,819.31 (plus or minus 10 dollars) O none of the answers are within 10 dollars of the correct answer
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Ross has decided that he wants to build enough retirement wealth that, if invested at 5 percent per year, will provide him with $3,500 of monthly income for 25 years. To date, he has saved nothing, but he still has 15 years until he retires. How much money does he need to contribute per month to reach his goal? First compute how much money he will need at retirement, then compute the monthly contribution to reach that goal. (Do not round intermediate calculations and round your final answer to 2 decimal places.)
bed What's the interest rate of a 5-year, annual $5,400 annuity with present value of $22,000? (Use a time value of money calculator or a spreadsheet. Round your answer to 2 decimal places.) Annuity interest rate %
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Glenn wants to have $144,269.90 in 6 years. He plans to make regular savings contributions of $13,500.00 per year for 6 years, with the first of these regular savings contributions made in 1 year. He also expects to make a special savings contribution of X in 3 years. He expects to earn 17.72 percent per year. What is X, the amount of the special savings contribution that Glenn will make in 3 years? O $9,216.63 (plus or minus 10 dollars) O $6,650.77 (plus or minus 10 dollars) O $10,849.82 (plus or minus 10 dollars) O $15,387.89 (plus or minus 10 dollars) O none of the answers are within 10 dollars of the correct answer
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Mary wants to retire in 37 years with $1 million in her retirement account. To that end she decides to save money every year in a savings plan that pays 11.3 percent annually. Her first contribution will occur at the end of the year (one year from today). She needs to save $__________ each year to the savings plan. Round it to two decimal places and do not include the $ sign, e.g., 1234.56.

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