Reference no: EM133120565
-Derek plans to retire on his 65th birthday. However, he plans to work part-time until he turns 72.00. During these years of part-time work, he will neither make deposits to nor take withdrawals from his retirement account. Exactly one year after the day he turns 72.0 when he fully retires, he will begin to make annual withdrawals of $162,509.00 from his retirement account until he turns 85.00. He he will make contributions to his retirement account from his 26th birthday to his 65th birthday. To reach his goal, what must the contributions be? Assume a 7.00% interest rate.
-Derek plans to retire on his 65th birthday. However, he plans to work part-time until he turns 74.00. During these years of part-time work, he will neither make deposits to nor take withdrawals from his retirement account. Exactly one year after the day he turns 74.0 when he fully retires, he will begin to make annual withdrawals of $116,840.00 from his retirement account until he turns 92.00. After this final withdrawal, he wants $1.71 million remaining in his account. He he will make contributions to his retirement account from his 26th birthday to his 65th birthday. To reach his goal, what must the contributions be? Assume a 5.00% interest rate.
-Derek plans to retire on his 65th birthday. However, he plans to work part-time until he turns 70.00. During these years of part-time work, he will neither make deposits to nor take withdrawals from his retirement account. Exactly one year after the day he turns 70.0 when he fully retires, he will wants to have $2,866,669.00 in his retirement account. He he will make contributions to his retirement account from his 26th birthday to his 65th birthday. To reach his goal, what must the contributions be? Assume a 4.00% interest rate
-Derek borrows $320,058.00 to buy a house. He has a 30-year mortgage with a rate of 5.31%. After making 121.00 payments, how much does he owe on the mortgage?
-Derek borrows $32,698.00 to buy a car. He will make monthly payments for 6 years. The car loan has an interest rate of 5.62%. After a 15.00 months Derek decides to pay off his car loan. How much must he give the bank?
-Derek wants to withdraw $11,350.00 from his account 8.00 years from today and $13,936.00 from his account 14.00 years from today. He currently has $2,133.00 in the account. How much must he deposit each year for the next 14.0 years? Assume a 5.42% interest rate. His account must equal zero by year 14.0 but may be negative prior to that.
-Derek can deposit $200.00 per month for the next 10 years into an account at Bank A. The first deposit will be made next month. Bank A pays 12.00% and compounds interest monthly. Derek can deposit $2,419.00 per year for the next 10 years into an account at Bank B. The first deposit will be made next year. Bank B compounds interest annually. What rate must Bank B pay for Derek to have the same amount in both accounts after 10 years?