Retirement Savings Options Answers

Suppose that a family wants to start a college fund for their child. If they can get a rate of 5.2%, compounded monthly, and want the fund to have a value of $55,500 after 20 years, how much should they deposit monthly? Assume an ordinary annuity and round to the nearest cent.a.$131.93b.$2,662.49c.$1,643.30d.$3,446.64

$3,250 is withdrawn at the end of every month from an account paying 4.1% compounded monthly. Determine the previous value of the account, given that withdrawals are made from the account for 30 years. Round to the nearest cent.a.$1,170,000.00b.$2,304,150.99c.$674,899.66d.$672,601.61

For the last 10 years, Megan has made regular semiannual payments of $1,624.13 into an account paying 1.5% interest, compounded semiannually. If, at the end of the 10 year period, Megan stops making deposits, transfers the balance to an account paying 2.3% interest compounded monthly, and withdraws a monthly salary for 5 years from the new account, determine the amount that she will receive per month. Round to the nearest cent.a.$616.39b.$615.21c.$39,079.25d.$39,154.16

You plan on supplementing your income. You would like to withdraw a semiannual salary of $6,951.20 from an account paying 1.75% interest, compounded semiannually. Determine the amount needed in the account such that you can withdraw the needed amount at the end of each period for 15 years. Round to the nearest cent.a.$239,364.66b.$182,713.25c.$184,311.99d.$237,288.39

Tami would like to withdraw $10,364.10 at the end of each year, for 10 years, from an account paying 2.3% compounded annually. Determine the amount needed in the account for Tami to do this. Round to the nearest cent.a.$115,052.98b.$103,641.00c.$91,651.92d.$93,759.91

In the table below, we are given two annuity plans, A and B, and the amount invested into each plan every month. Given this information, determine which of the two investments is an ordinary annuity, and the amount invested over a 12 month period. a. Investment A is an ordinary annuity with an annual contribution of $1,100 b. Investment A is an ordinary annuity with an annual contribution of $100 c. Investment B is an ordinary annuity with an annual contribution of $1,100 d. Investment B is an ordinary annuity with an annual contribution of $100 Please select the best answer from the choices provided

Stan has made a $125.30 monthly deposit into an account that pays 1.5% interest, compounded monthly, for 35 years. He would now like to draw a monthly salary from the account. Determine the amount that Stan can withdraw each month for 20 years, if he plans on not having anything in the account at the end of the 20 year period and no future deposits are made to the account.a.$69,242.49b.$69,159.05c.$333.29d.$333.71

You put $125.32 at the end of each month in an investment plan that pays 2.5% interest, compounded monthly. How much will you have after 23 years? Round to the nearest cent.a.$46,683.28b.$4,564,471.88c.$2,949.39d.$3,832.84

$765.13 is deposited at the end of each month for 2 years in an account paying 12% interest compounded monthly. Find the amount of the account. Round your answer to the nearest cent.a.$18,911.18b.$19,873.08c.$20,638.21d.$21,403.34

If quarterly payments are made for 15 years, find the value for n in the following present value ordinary annuity formula. a. b. c. d. Please select the best answer from the choices provided