Question

1. You deposit $2000 into a savings account  which is earning 4% compounded annually.  How much will you have in

your account after  5 years?  After 15 years?

2. What is $20,000 to be received at the end of  10 years worth to you today when interest  rates are 6%?

3. Upon your retirement in 40 years you would  like to have saved $4,500,000.  How much will  you have to save annually at 9% interest in  order to reach your goal?  Upon your expected  retirement, how much will you be able to  withdraw annually for 30 years (using 9%)?

4. Ella’s original investment has grown from  $6000 to $24,000 over the past 18 years.   What  interest rate has Ella been earning?

5. Terrie Dactel has calculated that if she retired  today she would be very comfortable living on  $50,000 annually. Unfortunately, Terrie won’t  be retiring for another 35 years. If Terrie  expects inflation to average 3% annually over  the next 35 years, what income level will she  need in the future to equal her lifestyle today?

6. How much do you need to deposit today so   that at the end of year 10 you can withdraw  $25,000, at the end of year 12 you can  withdraw $30,000 and at the end of year 15  you can with-draw $50,000-assuming an  interest rate of 7%?

 7. Bob Katz needs $35,000 by the end of 12  years. How much will he need to save annually  if interest rates remain at 9%?

8. Sally Mander has decided to endow her  university with a perpetual gift of $100,000  annually. Sally plans on giving this gift in 10  years.  Assuming interest rates remain at 8%,  how much will Sally need to save annually over  the next 10 years to fund this endowment?

 9. Ella Funt would like to have $50,000 available in 15 years. If interest rates remain at 7%;

 a)  How much will Ella need to save annually?

b)  How large of a deposit is needed if Ella decides to make a single deposit today

c)  If Ella knows that at the end of the fifth year she will receive $10,000 towards her goal, how much will she still need to deposit annually?

 10. Currently, Ally Gator has $16,000 in her Roth  IRA. If Ally plans on contributing $5000  annually for next 40 years and her IRA earns  9% annually, what will her IRA be worth

11. Monte Lyon purchased a home in Queen Creek  for $380,000 putting 20% down and financing  the remainder at 5% for 30 years. What is his  estimated monthly payment?

Looking for a Similar Assignment? Order now and Get 10% Discount! Use Coupon Code "Newclient"