How much do you need to save at the end of each year

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Reference no: EM132042674

Queston: 1. You want to have $500,000 saved up in your IRA by the time you are 60. You are currently 25 years old and you are starting with 0$. If you can earn 10% a year on your investments, how much would you need to put away at the end of each year to have $500,000 at age 60?

2. Same situation as #2. But now you are age 40 and you are starting with 0$. How much do you need to save at the end of each year to have $500,000 by age 60?

3. Your company buys a piece of equipment for $100,000. You finance the purchase with a loan at 5% and no down payment and make equal monthly payments over 48 months. What is the amount of the payment?

4. In #3 above, you have a cash windfall and decide to pay the loan early. What is the balance of the loan after you make the 3rd payment?

5. How much money do you need today in the form of a lump sum that would allow you to withdraw $10,000 per year for the next 20 years (in 20 years the stash would be reduced down to zero). The money should earn 5% annually over this period.)

Reference no: EM132042674

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