If you want $3,000,000 saved by the time you retire in 40 years and you earn 8% interest on your savings, how much would you need to save each year?
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If you want $3,000,000 saved by the time you retire in 40 years and you earn 8% interest on your savings, how much would you need to save each year?
Assume annual compounding. Enter your answer rounded to two decimal places.
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- You put $250 in the bank for S years at 12%. A. If interest is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the fifth year. B. Use the future value of $1 table in Appendix B and verity that your answer is correct.Calculating interest earned and future value of savings account. If you put 6,000 in a savings account that pays interest at the rate of 3 percent, compounded annually, how much will you have in five years? (Hint: Use the future value formula.) How much interest will you earn during the five years? If you put 6,000 each year into a savings account that pays interest at the rate of 4 percent a year, how much would you have after five years?Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $4,200 over the next 6 years when the interest rate is 8%, how much do you need to deposit in the account? B. If you place $8,700 in a savings account, how much will you have at the end of 12 years with an interest rate of 8%? C. You invest $2,000 per year, at the end of the year, for 20 years at 10% interest. How much will you have at the end of 20 years? D. You win the lottery and can either receive $500,000 as a lump sum or $60,000 per year for 20 years. Assuming you can earn 3% interest, which do you recommend and why?
- Suppose you want to have $800,000 for retirement in 25 years. Your account earns 7% interest compounded annually. Round your answers to the nearest cent.a) How much would you need to deposit in the account each month? $ b) How much interest will you earn? $You believe you will spend $47,000 a year for 13 years once you retire in 26 years. If the interest rate is 7% per year, how much must you save each year until retirement to meet your retirement goal? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Annual savingsYou plan to invest $2,000 per year into a retirement account. If you earn a compound annual rate of return of 5%, how many years will it take you to reach a balance of $500,000?
- Suppose you put $ 475 a month for retirement into an annuity earning 5.75% compounded monthly. If you need $ 500000 to retire, in how many years will you be able to retire? Years =You would like to have $650,000 when you retire in 40 years. How much should you invest each quarter if you can earn a rate of 3.6% compounded quarterly? a) How much should you deposit each quarter? b) How much total money will you put into the account? c) How much total interest will you earn?You believe you will spend $48,000 a year for 12 years once you retire in 24 years. If the interest rate is 5% per year, how much must you save each year until retirement to meet your retirement goal? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
- You would like to have $1,000,000 when you retire in 40 years. How much should you invest each quarter if you can earn a rate of 4.7% compounded quarterly?a) How much should you deposit each quarter?b) How much total money will you put into the account?c) How much total interest will you earn?Suppose you invest in an annuity that pays 5% interest, compounded semiannually. How much will you need to invest, semiannually, to reach a savings goal of $500,000 at the end of 25 years?You believe you will spend $44, 000 a year for 16 years once you retire in 32 years. If the interest rate is 7% per year, how much must you save each year until retirement to meet your retirement goal? Note: Do not round intermediate calculations. Round your answer to 2 decimal places.