HW21: Problem 1 Previous Problem Problem List Next Problem Bob makes his first $800 deposit into an IRA earning 7% compounded annually on the day he turns 28 and his last $800 deposit on the day he turns 53 (26 equal deposits in all). With no additional deposits, the money in the IRA continues to earn 7% interest compounded annually until Bob rets on his 65th birthday. How much is the IRA worth when Bob retires? Value of the IRA on Bob's 65th birthday: $ Preview My Answers Submit Answers You have attempted this problem 0 times. You have unlimited attempts remaining. Email instructor
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- HW21: Problem 3 Provious Problem Problem List Next Problem Bob makes his first $1,050 deposit into an IRA eaming 6.5% compounded annually on the day he turns 23 and his last $1,050 deposit on the day he turns 46 (24 equal deposits in al) With no additional deposits, the money in the IRA continues to earn 6.5% interest compounded annually until Bob retires on his 65th birthday. How much is the IRA worth when Bob retires? Value of the IRA on Bob's 65th birthday: (Note: The answer is a dolar amount, should include a dollar sign, and should be accurate to two decimal places).A Question 11 You deposit $5000 each year into your retirement account, starting in one year. If these funds earn an average of 5% per year over the 27 years until your retirement, what will be the value of your retirement account upon retirement? Your Answer: Answer Hide hint for Question 11 NOTICE THAT THE ONLINE FINANCIAL CALCULATOR HAS THE BUTTON FOR PAYMENTS MADE AT THE END OF THE PERIOD. THIS IS THE DEFAULT OF THE CALCULATOR, AND THE WORDS 'STARTING IN ONE YEAR' ARE JUST CONFIRMATION THAT YOU WANT THAT END OF THE PERIOD BUTTON SELECTED.#16 Today is Derek's 25th birthday. Derek has been advised that he needs to have $2,993,861.00 in his retirement account the day he turns 65. He estimates his retirement account will pay 7.00% interest. Assume he chooses not to deposit anything today. Rather he chooses to make annual deposits into the retirement account starting on his 29.00th birthday and ending on his 65th birthday. How much must those deposits be? Submit Answer format: Currency: Round to: 2 decimal places. unanswered not_submitted Attempts Remaining: Infinity
- Knowledge Check Question 22 Austin V Espate Nicole is planning for retirement. She deposits S825 at the end of each year in an ordinary annuty that pays 4% interest, compounded annually. Answer each part. Do not round any intermediate computations nor answers. If necessary, refer to the lat.otinaocialformulas (a) Find the totat value of the annuity at the end of the 1" year. (b) Find the total value of the annuity at the end of the 2 year (c) Find the total value gf the annuity at the end of the 3 year.Accounting Question 4. Today is Mr. Wang's 30th birthday. He plans to retire on his 65th birthday. Assuming that Mr. Wang will deposit $20000 into the investment account at the beginning of each month from today, the account will earn an actual return of 4.9070208% every year in the first 15 years and 4.8% every year and interest every month in the next 20 years. The first contribution is paid today and the last contribution is paid one month before the day of retirement on your 65th birthday. a) Try to find an account balance on your 65th birthday b) Try to calculate total interest earned c) Try to calculate the total single interest d) Try to calculate compound interestQuestion 11 You deposit $5000 each year into your retirement account, starting in one year. If these funds earn an average of 5% per year over the 27 years until your retirement, what will be the value of your retirement account upon retirement? Your Answer: Answer
- Question 3: 1 Salem wishes to withdraw AED 30,000 at the end of each year of the next 6 years from his bank account that pays 10% interest compounded annually. Required: a. How much does Salem need to invest today to meet this goal? b. Which annuity (ordinary annuity or annuity due) is better for Salem's situationProblem 7-03 A 45-year-old woman decides to put funds into a retirement plan. She can save $2,000 a year and earn 7 percent on this savings. How much will she have accumulated if she retires at age 65? Use Appendix C to answer the question. Round your answer to the nearest dollar.$ At retirement how much can she withdraw each year for 25 years from the accumulated savings if the savings continue to earn 7 percent? Use Appendix D to answer the question. Round your answer to the nearest dollar.$Problem 11-64 (LO 11-5) Terrance is age 72 and retired. Beginning in 2022, he must start taking minimum distributions from his IRA account that had a balance of $170,000 as of December 31, 2021. Make these three assumptions: his IRA will earn 10% per year based on the annual beginning balance, he will withdraw the minimum distribution on the last day of each calendar year, and only one distribution will be taken in 2022. Required: Calculate the amount of his distribution for years 2022 through 2026 and the ending balance in his IRA account on December 31, 2026. Use Table I, Table III, and Table V. Note: Round "Applicable Life Expectancy" answers to 1 decimal place and other answers to nearest whole dollar value. Use these answers in subsequent computations. Year 2022 2023 2024 2025 2026 (1) IRA Balance At End of Prior Year $ 170,000 (2) Applicable Life Expectancy (3) Required Distribution (4) IRA Earnings (5) Ending Balance
- hw 3 10) Upon graduating from college 35 years ago, Dr. Nick Riviera was already planning for his retirement. Since then, he has made deposits into a retirement fund on a quarterly basis in the amount of $250. Nick has just completed his final payment and is at last ready to retire. His retirement fund has earned 9 percent compounded quarterly. Use five decimal places for the periodic interest rate in your calculations. a. How much has Nick accumulated in his retirement account? b. In addition to this, 15years ago Nick received an inheritance check for $20,000 from his beloved uncle. He decided to deposit the entire amount into his retirement fund. What is his current balance in the fund? Part 1 a. The amount Nick has accumulated in his retirement account is $_____QUESTION 9 Norbert Chapa is saving for retirement by putting away $6,090.00 every day for 6 years. How much is this investment worth at the end of 6 years if payments begin today" Assume an interest rate of 1.00%. Oa. $35,295.42 b. $12,945,053.24 Oc. $13,745,519.33 O d. $37,466.80Problem #3 Natasha, age 62, purchases an annuity for $43,200. Natasha will receive $400 per month for the rest of her life. The expected return multiple is 22.5. (this factor is from Table 3-1, page 3-21) Question: At age 65, Natasha may exclude what amount from income?