Annuities

1.

You would like to have $650,000 when you retire in 30 years. How much should you invest each quarter if you can earn a rate of 2.3% compounded quarterly? a) How much should you deposit each quarter? 5 b) How much total money will you put into the account? S c) How much total interest will you earn? 5 You deposit $350 each month into an account earning 6% interest compounded monthly. a) How much will you have in the account in 30 years? S b) How much total money will you put into the account? S c) How much total interest will you earn? S You would like to have $900,000 when you retire in 30 years. How much should you invest each quarter if you can earn a rate of 4.6% compounded quarterly? a) How much should you deposit each quarter? S b) How much total money will you put into the account? 5 c) How much total interest will you earn? 5 How much would you need to deposit in an account each month in order to have $10,000 in the account in 8 years? Assume the account earns 7% interest. How much would you need to deposit in an account each month in order to have $40,000 in the account in 9 years? Assume the account earns 2% interest. How much should you invest each month in order to have $400,000 if your rate of return is 4.8% compounded monthly and you want to achieve your goal in 40 years? 5 How much interest will you earn? 5 How much should you invest each month in order to have $400,000 if you want to achieve your goal in 20 years? 5 If you deposit the amount you need to achieve your goal in 20 years, how much will your savings be worth after 10 years? 5 How much should you invest each month in order to have $600,000 if your rate of return is 5.3% compounded monthly and you want to achieve your goal in 40 years? S How much interest will you earn? 5 How much should you invest each month in order to have $600,000 if you want to achieve your goal in 20 years? 5 If you deposit the amount you need to achieve your goal in 20 years, how much will your savings be worth after 10 years? 5 You want to be able to withdraw the specified amount periodically from a payout annuity with the given terms. Find how much the account needs to hold to make this possible. Round your answer to the nearest dollar. Regular withdrawal: Interest rate: $3100 2% _ _ _ Time: 18 years Account balance: S You want to be able to withdraw the specified amount periodically from a payout annuity with the given terms. Find how much the account needs to hold to make this possible. Round your answer to the nearest dollar. Regular withdrawal: $1200 45% monthly 20 years Account balance: 5 You want to be able to withdraw the specified amount periodically from a payout annuity with the given terms. Find how much the account needs to hold to make this possible. Round your answer to the nearest dollar. Regular withdrawal: $1000 monthly 19 years Account balance: 5 You want to be able to withdraw the specified amount periodically from a payout annuity with the given terms. Find how much the account needs to hold to make this possible. Round your answer to the nearest dollar. Regular withdrawal: $3000 Interest rate: 4.5% Frequency quarterly Time: 29 years Account balance: 5 You want to be able to withdraw the specified amount periodically from a payout annuity with the given terms. Find how much the account needs to hold to make this possible. Round your answer to the nearest dollar. Regular withdrawal: $2600 Interest rate: 4.5% Frequency monthly Time: 23 years Account balance: 5 You expect to have the given amount in an account with the given terms. Find how much you can withdraw periodically in order to make the account last the specified amount of time. Round your answer to the nearest cent. Account balance: $400,000 4-15% Time: Periodic Withdraw: S You expect to have the given amount in an account with the given terms. Find how much you can withdraw periodically in order to make the account last the specified amount of time. Round your answer to the nearest cent. Account balance: $400,000 Interest rate: 4.75% Frequency quarterly Time: 28 years Periodic Withdraw: S You expect to have the given amount in an account with the given terms. Find how much you can withdraw periodically in order to make the account last the specified amount of time. Round your answer to the nearest cent. Account balance: $800,000 Interest rate: 2.2% Frequency monthly Time: 19 years Periodic Withdraw: S You expect to have the given amount in an account with the given terms. Find how much you can withdraw periodically in order to make the account last the specified amount of time. Round your answer to the nearest cent. Account balance: $200,000 Interest rate: 4.4% quarterly 21 years Periodic Withdraw: S You expect to have the given amount in an account with the given terms. Find how much you can withdraw periodically in order to make the account last the specified amount of time. Round your answer to the nearest cent. Account balance: $300,000 Interest rate: 2.85% Frequency monthly Time: 27 years Periodic Withdraw: S