HomeworkLib
Question

What size nest egg do we need in order to retire with a 20-year annuity that...

What size nest egg do we need in order to retire with a 20-year annuity that yields $5000 per month if the retirement account pays an APR of 6%?

business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Value should be =Present value = pv = PMT*(1-(1/(1+r^n)}}/ $697,903.86 $5000*(1-(1/(1.005~240)))/0.005

0 0
Add a comment
Know the answer?
Add Answer to:
What size nest egg do we need in order to retire with a 20-year annuity that...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • You plan to work for 40 years and then retire using a 25-year annuity. You want...

    You plan to work for 40 years and then retire using a 25-year annuity. You want to arrange a retirement income of $4700 per month. You have access to an account that pays an APR of 4.8% compounded monthly. What size nest egg do you need to achieve the desired monthly yield? (Round your answer to the nearest cent.)

  • You plan to work for 40 years and then retire using a 25-year annuity. You want...

    You plan to work for 40 years and then retire using a 25-year annuity. You want to arrange a retirement income of $4800 per month. You have access to an account that pays an APR of 4.8% compounded monthly. What size nest egg do you need to achieve the desired monthly yield? (Round your answer to the nearest cent.) eBook

  • Suppose you want to save in order to purchase a new boat. Take the APR to be 6.0%.

     Suppose you want to save in order to purchase a new boat. Take the APR to be 6.0%. If you deposit $250 each month, how much will you have toward the purchase of a boat after three years? (Round your answer to the nearest cent.) You plan to work for 40 years and then retire using a 25-year annuity. You want to arrange a retirement income of $4300 per month. You have access to an account that pays an APR of 4.8%...

  • You plan to work for 40 years and then retire using a 25-year annuity. You want...

    You plan to work for 40 years and then retire using a 25-year annuity. You want to arrange a retirement income of $4000 per month. You have access to an account that pays an APR of 7.2% compounded monthly. This requires a nest egg of $555,873.10. What monthly deposits are required to achieve the desired monthly yield at retirement? (Round your answer to the nearest cent.) eBook

  • Suppose you have 25 years until you retire, and that you desire a retirement nest-egg of...

    Suppose you have 25 years until you retire, and that you desire a retirement nest-egg of $2,500,000 on the day you retire. Suppose also that you’ve saved $100,000 toward your retirement so far, and that your investment account earns a nominal rate of 7.5% per year, compounded monthly. In addition, suppose you expect a windfall inheritance of $200,000 five years from now that you will invest in this account. a) What is the effective interest rate, or annual percentage yield,...

  • Suppose you have 25 years until you retire, and that you desire a retirement nest-egg of...

    Suppose you have 25 years until you retire, and that you desire a retirement nest-egg of $2,500,000 on the day you retire. Suppose also that you’ve saved $100,000 toward your retirement so far, and that your investment account earns a nominal rate of 7.5% per year, compounded monthly. In addition, suppose you expect a windfall inheritance of $200,000 five years from now that you will invest in this account. a) What is the effective interest rate, or annual percentage yield,...

  • Suppose we have a nest egg of with an APR of 5% compounded monthly. Find the...

    Suppose we have a nest egg of with an APR of 5% compounded monthly. Find the monthly yield for a 10-year annuity.

  • you want a one million dollar nest egg when you retire. At present, you have $30,000...

    you want a one million dollar nest egg when you retire. At present, you have $30,000 saved and would like to retire in 20 years. to reach your goal, you have arbitrarily chosen to set aside $300 a month towards your goal. if you stay on track with your current plan, assuming an average annual return of 6%, how much will you have saved by retirement?

  • You begin working at age 25, and your employer deposits $350 each month into a retirement...

    You begin working at age 25, and your employer deposits $350 each month into a retirement account that pays an APR of 6% compounded monthly. Complete the following table to show the size of your nest egg in terms of the age at which you retire. Include retirement ages every year from 60 to 70 years old. (round your answers to the nearest cent.)

  • We are considering the effects of starting early or late to save for retirement. Assume that...

    We are considering the effects of starting early or late to save for retirement. Assume that each account considered has an APR of 6% compounded monthly. Against expert advice, you begin your retirement program at age 40. You plan to retire at the age of 65. What monthly contributions do you need to make to save up a nest egg of $187,799.63? (Round your answer to the nearest cent.)

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT