Question
Please answer with steps for BA II finc. calculator (not excel steps) a. You anticipate that you will need $1,500,000 when you retire 30 years
Please answer with steps for BA II finc. calculator (not excel steps)
a. You anticipate that you will need $1,500,000 when you retire 30 years from now. You just join a new firm and your first annual salary is $100,000 to be received one year from today. You also received one time signing bonus of $50,000 today. You decided that you will put all you signing bonus into your account plus you will contribute $X every year starting next year for the next 29 years. In other words, after your initial deposit of $50,000, your first payment will be made on year 1 and last payment will be on year 29. How much is $X if you want to have $1,500,000 in Year 30. Assume that interest rate is 8%, compounded annual during this duration.
- $1,388,888.89
- $1,288.,888.89
- $106,159.09
- $98,150.35
- $8,878.15
b. You are saving for your child's education since you did not participate in the Texas Tomorrow Fund. Your child is five-year-old today. Starting next quarter, you will deposit $300 every quarter until you child turns 17. Your last payment will be on his 17th year.You can to withdraw $X every year starting his 18th birthday for 4 years (first payment on his 18th birthday). Assuming you have investing your money in an account is provides 12% return, and the interest is compounded daily (365 days), what is X?
- $13,826.63
- $11,998.78
- $10,608.75
- $8,982.45
- $5,782.88
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