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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
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
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