Today, Barry reached his 50th birthday and he has $70,000 in his retirement fund. His goal is to have $500,000 on his 65th birthday. He can expect his investments to earn 13% compounded semiannually. How much will he have to invest at the end of every six months for the next 15 years in order to reach his goal? Group of answer choices $428.30 $926.14 $4,978.30 $1,722.84 $2,388.89

Today, Barry reached his 50th birthday and he has $70,000 in his retirement fund. His goal is to have $500,000 on his 65th birthday. He can expect his investments to earn 13% compounded semiannually. How much will he have to invest at the end of every six months for the next 15 years in order to reach his goal? Group of answer choices $428.30 $926.14 $4,978.30 $1,722.84 $2,388.89

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 39P

See similar textbooks

Similar questions

? You would like to have enough money saved to receive a $53,000 per year perpetuity after retirement. How much would you need to have saved in your retirement fund to achieve this goal? Assume that the perpetuity payments start on the day of your retirement. The annual interest rate is 8 percent. O -00 Multiple Choice $715,500 $1,060,000 $530,000
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
What does Shelley need to save monthly to make sure she is on track to reach her retirement goal of having $440,000 saved by the time she reaches age 65? She is 48 years old, has been contributing $400 per month and has $180, 000 in her RRSP. Assume she will make an annual return of seven percent. Select one: a. $1275 b. $336 c. $681 d. $1133
You would like to give your daughter $75,000 towards her college education 16 years from now. How much money must you set aside today for this purpose if you can earn 8 percent on your investments? Group of answer choices $28,417.67 $18,388.19 $29,311.13 $21,891.79 $20,270.17
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 = ____________
You want to retire exactly 35 years from today with $2,080,000 in your retirement account. If you think you can earn an interest rate of 10.59 percent compounded monthly, how much must you deposit each month to fund your retirement? Multiple Choice $4,952.38 $558.12 $465.90 $501.34 $470.01
You deposit $17,000 each year for 10 years at 7%. Then you earn 9% after that. If you leave the money invested for another 5 years how much will you have in the 15th year? (select the answer closest to your answer) Multiple Choice $322276 $455855 170000 $234880 $170000 $361391
Your brother plans to retire in 15 years. He currently has a deposit of $300,000, and think he will need $1,500,000 at retirement. If he can save and deposit $7,000 at the end of each year in the following 15 years, annual rate of interest must he eam to reach his goal? O a. 11.12% O b.8.52% Ос 7.44% O d. 9.00% O e. 10.13% what
After retirement, you expect to live for 25 years. You would like to have $91,000 in income each year. How much should you have saved in your retirement account to receive this income if the annual interest rate is 9 percent per year? (Assume that the payments start one year after your retirement) Multiple Choice $1,472.33173 $893,85474 $2,275,000.00 $101,089.74
You wish to retire 40 years from now. You want OMR 50,000 per year once you retire with the first retirement fund withdrawn one year from the day you retire. You estimate that the interest rate is 6% per year and you will need funds up to and including 25th birthday after retirement Select one: O a. None Ob. 639167.81 O c. 63916.78 O d. 621412.90 O e. 62141.29
Peter has opened a retirement investment account and plan to contribute $6,000 at the end of each year to his account for 30 years. He wants to retire when he has $1 million in the account. What expected annual rate of return must earn to have $1 million in his account? 11.24% 8.93% 9.26% 12.18% 10.07%
Sergio plans to retire in 15 years. He would like to have $250,000 in his retirement account. If he invests in a plan that pays 4.69% interest compounded monthly, how much should he contribute monthly? a. $138.89 b. $277.88 c. $959.77 d. $560.23