PLEASE ANSWER ALL QUESTIONS
Future value : $200,000
Time:4 years
Letter of name: H 7.00%-8.99% (use this) !
THERE IS NO OTHER INFORMATION GIVEN THIS IS THE ENTIRE QUESTION
2. Based on your research, state the lump sum, in SU.S., that you want to have when you retire. This is the future value of your investment; denote it by F. (4 points) Future value, F S 3. State the time, in years, that you plan to contribute to your retirement account. Denote this by t (4 points) Time, t 4. Based on the first letter of your last name, choose the annual interest rate for your retirement account from the chart below. It does not necessarily have to be a whole number. Denote this byr, and convert this to its decimal form. First letter of your last name Possible values for A-F 5.00%-6.9996 G-L 7.0096-8.9996 M-R 9.00%-10.9996 S-Z 11.0096-12.99% Type your chosen value here: (4 points) Annual interest rate in decimal form, 5. From the table below.choose how many times per year you want to contribute to your retirement fund. Denote this by n, and this will also be your compounding period. Solutio Compounding Period n by Yearly 1 Modified Mastering 4th Edition View all sol Semi-Annually 2 Quarterly 4 Monthly 12 Top Che help rig! Weekly 52 Type your chosen value here: (4 points) Compounding period, 6. Calculate the interest rate per compounding period, which you will denote by i by dividing the annual interest rate from #4 by the compounding period from 5: iern Round your answer to 6 decimal places, Interest rate per compounding period, FE Show and explain your work here: (5 points) 7. Your contribution per period, which you will denote by to this retirement account is calculated using the following formula: C=F*ii+i(nt)-1. Using the values that you have chosen for F.in, and t calculate your contribution per period. Use 6 decimal places for your intermediate calculations, and round your final answer to the nearest cent. Contribution amount, C $ Show and explain your work here: (6 points) 8. Calculate your total contribution to this retirement account, which you will denote by TC, by using the formula TC = Cxnxt. Total contribution, TC S Show and explain your work here: (5 points) 9. What can you say about the difference in value between your total contribution (TC) and the lump sum (A) that you will receive? Based on what you have learned in this unit, is there a term that is used for this difference? Show and explain your work here: (6 points) 10. Summarize the results of your calculations, and explain why it is important to prepare for your retirement Show and explain your work here: (6 points) 2. Based on your research, state the lump sum, in SU.S., that you want to have when you retire. This is the future value of your investment; denote it by F. (4 points) Future value, F S 3. State the time, in years, that you plan to contribute to your retirement account. Denote this by t (4 points) Time, t 4. Based on the first letter of your last name, choose the annual interest rate for your retirement account from the chart below. It does not necessarily have to be a whole number. Denote this byr, and convert this to its decimal form. First letter of your last name Possible values for A-F 5.00%-6.9996 G-L 7.0096-8.9996 M-R 9.00%-10.9996 S-Z 11.0096-12.99% Type your chosen value here: (4 points) Annual interest rate in decimal form, 5. From the table below.choose how many times per year you want to contribute to your retirement fund. Denote this by n, and this will also be your compounding period. Solutio Compounding Period n by Yearly 1 Modified Mastering 4th Edition View all sol Semi-Annually 2 Quarterly 4 Monthly 12 Top Che help rig! Weekly 52 Type your chosen value here: (4 points) Compounding period, 6. Calculate the interest rate per compounding period, which you will denote by i by dividing the annual interest rate from #4 by the compounding period from 5: iern Round your answer to 6 decimal places, Interest rate per compounding period, FE Show and explain your work here: (5 points) 7. Your contribution per period, which you will denote by to this retirement account is calculated using the following formula: C=F*ii+i(nt)-1. Using the values that you have chosen for F.in, and t calculate your contribution per period. Use 6 decimal places for your intermediate calculations, and round your final answer to the nearest cent. Contribution amount, C $ Show and explain your work here: (6 points) 8. Calculate your total contribution to this retirement account, which you will denote by TC, by using the formula TC = Cxnxt. Total contribution, TC S Show and explain your work here: (5 points) 9. What can you say about the difference in value between your total contribution (TC) and the lump sum (A) that you will receive? Based on what you have learned in this unit, is there a term that is used for this difference? Show and explain your work here: (6 points) 10. Summarize the results of your calculations, and explain why it is important to prepare for your retirement Show and explain your work here: (6 points)
