Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

12. Jesse begins working at Math Inc. and immediately begins to save for retirement by investing in a 401K. Math Inc. will match any amount

12. Jesse begins working at Math Inc. and immediately begins to save for retirement by investing in a 401K. Math Inc. will match any amount up to $500 per month into their 401K. Suppose Jesse deposits $400 per month ($800 total) into the 401K for his entire career of 45 years. Assume the 401K will earn 8.5% for the entire term. (a) How much will Jesse have in his 401K when he retires? N 1% PV PMT FV = P/Y, C/Y PMT END BEGIN (b) How much money in interest has Jesse earned when he retires? 1% PV = (c) If Jesse wants to receive payments every month for 20 years after he retires, how much will he receive? N = PMT FV P/Y, C/Y = N 1% PV PMT FV P/Y, C/Y = = = PMT END BEGIN (d) If Jesse wishes to leave his two children at least $1,000,000 each, after he dies, how long can he receive payments of $40,000 per month? After that point how much can his payments be to ensure that his balance doesn't drop below $2,000,000? || || || || 11 = PMT END BEGIN N 1% PV PMT FV P/Y, C/Y |||||||||| = PMT END BEGIN oft
image text in transcribed
image text in transcribed
image text in transcribed
ONLY NEED ANSWER TO PART D
12. Jesse begins working at Math Inc. and immediately begins to save for retirement by investing in a 401K. Math Ine, will match any amount up to $500 per month into their 401K. Suppose Jesse deposits $400 per month ( $800 total) into the 401K for his entire career of 45 years. Assume the 401K will earn 8.5% for the entire term. (a) How much will Jesse have in his 401K when he retires? NI%PVPMTFVP/Y,C/YPMT======= (b) How much money in interest has Jesse earned when he retires? (c) If Jesse wants to receive payments every month for 20 years after he retires, how much will he receive? muchI%PVPMTFVP/Y,C/YPMT======= (d) If Jesse wishes to leave his two children at least $1,000,000 each, after he dies, how long can he receive payments of $40,000 per month? After that point how much can his payments be to ensure that his balance doesn't drop below $2,000,000 ? NI%PVPMTFVP/Y,C/YPMT======:ENDBEGIN NI%PVPMTFVP/Y,C/YPMT======:ENDBEGIN PMT:ENDBEGIN 12. Jesse begins working at Math Inc, and immodiately begins to save for retirement by investing in a 401K. Math lne, will mateh any amount up to $500 per month inte their 401K. Suppose Jesse deposits $400 per month ( $800 total) into the 401K for his entire career of 45 years. Assume the 401K will earn 8.5% for the entire term. (a) How much will Jesse have in his 401K when he retires? N=I%=PV=PMT=FV=P/Y,C/Y=PMT:= (b) How much money in interest has Jesse earned when he retires? (c) If Jesse wants to receive payments every month for 20 years after he retires, how much will he receive? N=I%=PV=PMT=FV=P/Y,C/Y=P/T:=ENDBEGIN (d) If Jesse wishes to leave his two children at least $1,000,000 each, after he dies, how long can he receive payments of $40,000 per month? After that point how much can his payments be to ensure that his balance doesn't drop below $2,000,000 ? NI%PVPMTFVP/Y,C/YPMT======:ENDBEGIN N= 1%= PV= PMT= FV= P/Y,C/Y= PMT : END BEGIN

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Finance Book

Authors: Stuart Warner, Si Hussain

1st Edition

1292123648, 978-1292123646

More Books

Students also viewed these Finance questions

Question

If P(B|A) > P(B), show that P(B | A) Answered: 1 week ago

Answered: 1 week ago