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NNADVOKAT [17]
3 years ago
7

You are to make monthly deposits of $450 into a retirement account that pays an apr of 10.7 percent compounded monthly. if your

first deposit will be made one month from now, how large will your retirement account be in 32 years? (do not round intermediate calculations and round your answer to 2 decimal places,
e.g., 32.16.) retirement account value in 32 years
Business
1 answer:
USPshnik [31]3 years ago
3 0

The retirement account value in 32 years is calculated using the FV function in excel as in =FV(rate,nper,pmt) where

rate (monthly interest rate)= 10.7% = 0.107 = 0.107/12 (Monthly)

nper (number of periods)= 32*12 = 384 months

pmt (Monthly deposit) = 450

The retirement account's value in 32 years =FV(0.107/12,384,450) = 1,475,143.62

Your retirement account will be in 32 years =$1,475,143.62 (Rounded to 2 decimals)

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3 years ago
You are planning your retirement in 15 years. You plan to retire with $3,000,000 and your retirement account earns 4.8% compound
Maslowich

Answer:

The retirement fund will last for 33 years and 7 months

Explanation:

We need to solve for time in an ordinary annuity

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

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rate 0.004 (4.8% divide by 12 month)

PV $3,000,000

time n

15,000 \times \frac{1-(1+0.004)^{-n} }{0.004} = 3,000,000\\

we clear for n as much as we can and solve

(1+0.004)^{-n}= 1-\frac{3,000,000\times0.004}{15,000}

(1+0.004)^{-n}= 0.20

now we use logarithmic properties to solve for n:

-n= \frac{log0.2}{log(1+0.004)

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this will be a value in months so we divide by 12 to get it annually

403/12 = 33,5833

we convert the residual to months:

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3 years ago
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Explain how the following event would affect the cost curves A company's primary supplier of resources implements a 3 percent pr
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Answer:

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I hope my answer helps you

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