You want to be able to travel and your yearlong trip. During your trip your travel fund will earn 6.24% compounded monthly. What is the size of your travel fund if you want to be able to start your trip in 4 years and 7 months?
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- 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?You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years. Which table will help you determine the value of your account at the end of 12 years? A. future value of one dollar ($1) B. present value of one dollar ($1) C. future value of an ordinary annuity D. present value of an ordinary annuityYou want to be able to withdraw $40,000 from your account each year for 25 years after you retire. If you expect to retire in 15 years and your account earns 6.6% interest while saving for retirement and 6.2% interest while retired:Round your answers to the nearest cent as needed.a) How much will you need to have when you retire?$b) How much will you need to deposit each month until retirement to achieve your retirement goals?$c) How much did you deposit into you retirement account?$d) How much did you receive in payments during retirement?$e) How much of the money you received was interest?$
- You want to be able to withdraw $30,000 each year for 15 years. Your account earns 6% interest. How much do you need in your account at the beginning?You want to be able to withdraw $40,000.00 from your account each year for 15 years after you retire.You expect to retire in 20 years.If your account earns 5% interest compounded annually, how much will you need to deposit each year until retirement to achieve your retirement goal?You will need to deposit_$_____ each year.You want to invest an amount today that will last for 8 years and allow you to withdraw $725 at the end of each 6-month period. You earn 6% APR compounded semiannually on your investment. How much do you need to invest today to achieve your goal? Your Answer: Answer
- You want to be able to withdraw $3,000 each month for 25 years. Your account earns 9% interest. How much do you need in your account at the beginning?You are leaving today on an 3-year trip during which time you will incur expenses of $40,000 at the end of each year. How much must you invest today to have enough to meet your expenses? The annual percentage rate is 12%.suppose you want to be able to withdraw $4,800 at the end of each month for the next 20 years. How much would you need to have in the account at the beginning if you can earn 7.5% annually?
- You want to be able to withdraw $30,000 from your account each year for 15 years after you retire. You expect to retire in 30 years. If your account earns 4% interest, how much will you need to deposit each year until retirement to achieve your retirement goals?If you save $25 per week by bringing your lunch to school for 4 years, 12 months per year, andyou deposit the money at the end of each month into a savings account that pays 2% annualinterest, compounded monthly, then how much will you have at the end of the 4 years?