Calculate the accumulated amount of savings at retirement

Assignment Help Financial Management

Reference no: EM131312371

You want to compare two separate retirement savings? scenarios: (A) and? (B). In scenario? (A) you start? immediately, contribute for a few? years, but then stop contributing.? However, you leave the accumulated savings to compound until retirement. In scenario? (B) you start later? (after the end of savings in scenario? A) and contribute all the way to retirement. Calculate the accumulated amount of savings at retirement for the two scenarios.

Scenario Annual Payment Payment Period Total Number of Payments Length of Investment Interest Rate ?(A) ?$7000 End of years 1 to 13 13 ? 35 years 17 ?% ?(B) ?$7,000 End of years 14 to 35 22 ? 35 years 17 ?%

Scenario Accumulated Amount of Savings at Retirement ?(Future Value) ?(A) ?$nothing ?(Round to the nearest? cent.) ?(B) ?$nothing ?(Round to the nearest? cent.)

Reference no: EM131312371

Questions Cloud

Average return-what is the average monthly return : Average Return The past five monthly returns for PG Company are 3.65 percent, -.55 percent, 5.05 percent, 7.19 percent, and 4.74 percent. What is the average monthly return?

Required rate of return on project-what is the project alpha : Stock XYZ has an expected return of 12% and B = 1. Stock ABC is expected to return 13% with a beta of 1.5%. The market's expected return is 11% and r1 = 5%. a) According to the CAPM,which stock is a better buy? What is the required rate of return on ..

What was the amount of his withdrawal : Uriah Heep celebrated his 18th birthday by opening a savings account at the Thames River Bank and depositing $ 1900 . He continued to deposit the same amount on every subsequent birthday until he was 28 years old. What was the amount of his withdrawa..

Interest in the account is compounded semiannually : You deposit ?$500 in a bank in a 9 ?-year time deposit. With a time deposit you cannot withdraw funds from the account until the end of the term. Interest in the account is compounded semiannually ?(m= 2?) at the annual nominal rate of 12%. In the fi..

Calculate the accumulated amount of savings at retirement : You want to compare two separate retirement savings? scenarios: (A) and? (B). In scenario? (A) you start? immediately, contribute for a few? years, but then stop contributing.? However, you leave the accumulated savings to compound until retirement. ..

What is the amount of the monthly payment : A Hummer H3 sells for $92,000 tax included. GMAC lends money at the rate of 9.2 % APR. If you buy the car and borrow through GMAC, then what are the monthly? (end-of-month) payments for a 10 ?-year term? What is the amount of the monthly payment?

Nasdaq index has historically grown at average annual rate : In February of 2000 the NASDAQ Composite index peaked at a level of 4,692 ?(just before the Tech Bubble? popped). In February of 2006 it was at a level of 2,076. The NASDAQ index has historically grown at an average annual rate of 9.5 %. How many yea..

What is the present value of promised payments : Ethan sells his car to Seamus. Seamus promises to pay Ethan $950 at the end of each year for 10 years. What is the present value of Seamus's promised payments if the interest rate is 8 %? What is the present value of Seamus's promised payments?

Saved at retirement to fund these planned withdrawals : You are trying to calculate how much money you should have at retirement. On your 55 th birthday you will retire and immediately make your first withdrawal of $5,833.33. How much do you have to have saved at retirement to fund these planned withdraw..

User Account

All Pages