ou have just started working at a new job. You are making $3500 gross per month and want to save 5% of your gross earnings each month in a Roth IRA. You found an account that is averaging 6% APR. You plan to leave the money in the account for 20 years. How much will you have in the account after 20 years? A. $80,857.16 B. $23,465.46 C. $3,671.35 D. $77,249.74

ou have just started working at a new job. You are making $3500 gross per month and want to save 5% of your gross earnings each month in a Roth IRA. You found an account that is averaging 6% APR. You plan to leave the money in the account for 20 years. How much will you have in the account after 20 years? A. $80,857.16 B. $23,465.46 C. $3,671.35 D. $77,249.74

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 3PA: Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate...

See similar textbooks

Similar questions

Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $2,500 over the next 4 years when the interest rate is 15%, how much do you need to deposit in the account? B. If you place $6,200 in a savings account, how much will you have at the end of 7 years with a 12% interest rate? C. You invest $8,000 per year for 10 years at 12% interest, how much will you have at the end of 10 years? D. You win the lottery and can either receive $750,000 as a lump sum or $50,000 per year for 20 years. Assuming you can earn 8% interest, which do you recommend and why?
You want to accumulate $1 million by your retirement date, which is 25 years from now. You will make 25 deposits in your bank, with the first occurring today. The bank pays 8% interest, compounded annually. You expect to receive annual raises of 3%, which will offset inflation, and you will let the amount you deposit each year also grow by 3% (i.e., your second deposit will be 3% greater than your first, the third will be 3% greater than the second, etc.). How much must your first deposit be if you are to meet your goal?
You put $600 in the bank for 3 years at 15%. 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 third year. B. Use the future value of $1 table In Appendix B and verify that your answer is correct.
Suppose you receive $500 in graduation money. You decide to put it into an account paying 5%. If you deposit $175 into that same account every month for 7 years, how much money will you have at the end? $14,700.00 B $15,200.00 $16,195.49 $18,266.53 (E) $25,482.80
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
Suppose at the end of 12 years you have $105,000. in your retirement account. You decide to leave the money in the account for another 25 years but add no money. For the last 5 years you work, you will move the account into a safer retirement that averages 4% annually, you will pay $5000 per month during those 5 years. What will the account be worth when you retire? Assume the account compounds monthly. $1,437,013.86 $1,228,992.98 $1,537,697.32 $1,128,667.71
You are saving money for a down payment on a new house. You intend to place $5,000 at the end of each year for three years into an account earning 6% per year. At the end of the fourth year, you will place $10,000 into this account. How much money will be in the account at the end of the fourth year? $26,518.17 $25,918.00 $25,000.00 $26,873.08
You have $81,455,75 in a brokerage account, plan to deposit on additional $21,000 and you Dat the end of each future your year until account reaches $500,000, You expect to earn. D9% annually on the account. How long will it take to reach your goal? ΑΑΑΑΑΑΑΑΑΑΑΔΔΑΔ ΔΔΔΔ Δ Δ ΔΔΔΔΔΔΔΔΑ You just received an inheritance worth $200,000. You want to retive in 30 years and you don't plan to make any additional contributions. If you feed $1,000,000 in order to retire, what interest rate must you earn in order to reach your goal? $300 at the end of each of the An investment will раз next 3 years, $150 at the end of Year 4, $500 at the end of Year 5, $100 at the end of Year 6, and 1. require a $400 payment at the end of Year 7. If other investment of equal risk earn 7% annually, what is the present value of the cash flow stream 1 Using the same information from question 5, what is the future value of the cash flow stream?
You are working as an analyst for a financial advisor. One of your clients says they want to retire and be able to withdraw $55,000 per year for living expenses. Actuarial tables suggest your client will live for 30 years after retirement, and you estimate they could earn 6.5% annually. How much money do they need today to withdraw $55,000 per year for 30 years? O $726,542.41 O $8,315.23 O $649,571.24 O $718,227.17
You are planning to invest $ 9,000 in an account earning 8% per year for retirement. a. If you put the $ 9,000 in an account at age 23, and withdraw it 44 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 34 years, how much will you have at the end? a. If you put the $ 9,000 in an account at age 23, and withdraw it 44 years later, how much will you have? In 44 years you would have $ (Round to the nearest cent.)
You have $300,000.00 saved in a retirement account paying 4% interest compounded monthly and are ready to start your retirement. You have to figure out how much money you can safely take out of your account every month because you don't want to run out of money before you die.How much money can you take out each month if you expect to live another 25 years? You can safely withdraw $__________ a month for 25 years.
You want to have $1,000,000 in your retirement account by the time you turn 65. You are currently 25 years old and have not yet started saving for your retirement. If your 401K from work claims the average annual growth is 6%, how much do you need to save each month to have $1,000,000 when you retire? A. $1,442.01 each month B. $502.14 each month C. $2,083.33 each month D. $104.33 each month