Question 1

You want to be able to withdraw $50,000 from your account each year for 15 years after you retire. You expect to retire in 20 years. If your account earns 6% interest, how much will you need to deposit each year until retirement to achieve your retirement goals? When Catherine retired, she had a retirement account with a $490,000 balance. She decided that she would use this account to provide 20 years of equal quarterly payments. It is now 10 years later and Catherine just received her 40th montly check. Looking ahead, she can see that she needs to stretch her payments over another 16 years rather than the ten more she had originally planned. If she does this, how large wilL her new montLy payments be? Assume she earns interest at the APR of 6.3% compounded quarterly throughout her retirement. 5 Score on last try: 1.2 of 2 pts. See Details for more. > Next question 8 Get a similar question You can retry this question below A bank features a savings account that has an annual percentage rate of \"r = 5.6% with interest compounded semi-annually. Alex deposits $11,000 into the account. 7- at The account balance can be modeled by the exponential formula 305) = P(1 + ) , where S is the in, future value, P is the present value, 1" is the annual percentage rate, a is the number of times each year that the interest is compounded, and t is the time in years. {A} What values should be used for P, r, and n? P=P11000 J'o", r=f_056 J'd', #1sz '0' (B) How much money willAlex have in the account in 10 years? Answer = 5 Round answer to the nearest penny. {C} What is the annual percentage yield (APY) for the savings account? [The APY is the actual or effective annual percentage rate which includes all compounding in the year]. APY 2 D96. Round answer to 3 decimal places. A bank features a savings account that has an annual percentage rate of r' = 4% with interest compounded y. Ibram deposits $11,500 into the account. fr 113 The account balance can be modeled by the exponential formula 506) = P