Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Matt can deposit $14,011.00 on each birthday beginning with his 26.00th and ending with his 65.00th. What will the rate on the retirement account need

Matt can deposit $14,011.00 on each birthday beginning with his 26.00th and ending with his 65.00th. What will the rate on the retirement account need to be for him to have $3,451,908.00 in it when he retires?

If Matt plans to deposit $14,149.00 into his retirement account on each birthday beginning with his 26th and the account earns 8.00%, how long will it take him to accumulate $2,021,000.00?

Matt decides that he needs $163,033.00 per year in retirement to cover his living expenses. Therefore, he wants to withdraw $163033.0 on each birthday from his 66th to his 87.00th. How much will he need in his retirement account on his 65th birthday? Assume an interest rate of 5.00%.

Matt plans to retire on his 65th birthday. However, he plans to work part-time until he turns 70.00. During these years of part-time work, he will neither make deposits to nor take withdrawals from his retirement account. Exactly one year after the day he turns 70.0 when he fully retires, he will want to have $2,522,124.00 in his retirement account. He will make contributions to his retirement account from his 26th birthday to his 65th birthday. To reach his goal, what must the contributions be? Assume a 7.00% interest rate.

Round to two decimal places ANSWER ALL QUESTIONS OR DO NOT ATTEMPT

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Students also viewed these Finance questions