Question: Selma and Patty Bouvier are twins and both work at
Selma and Patty Bouvier are twins and both work at the Springfield DMV. Selma and Patty Bouvier decide to save for retirement, which is 35 years away. They’ll both receive an 8 per-cent annual return on their investment over the next 35 years. Selma invests $ 2,000 per year at the end of each year only for the first 10 years of the 35- year period— for a total of $ 20,000 saved. Patty doesn’t start saving for 10 years and then saves $ 2,000 per year at the end of each year for the remaining 25 years— for a total of $ 50,000 saved. How much will each of them have when they retire?
Answer to relevant QuestionsHow many years will the following take? a. $ 500 to grow to $ 1,039.50 if invested at 5 percent compounded annually b. $ 35 to grow to $ 53.87 if invested at 9 percent compounded annually c. $ 100 to grow to $ 298.60 if ...At what annual rate would the following have to be invested? a. $ 500 to grow to $ 1,948.00 in 12 years b. $ 300 to grow to $ 422.10 in 7 years c. $ 50 to grow to $ 280.20 in 20 years d. $ 200 to grow to $ 497.60 in 5 ...To buy a new house you take out a 25- year mortgage for $ 300,000. What will your monthly payments be if the interest rate on your mortgage is 8 percent? Use a spreadsheet to calculate your answer. Now, calculate the portion ...What is the present value of the following? a. A$ 300 perpetuity discounted back to the present at 8 percent b. A$ 1,000 perpetuity discounted back to the present at 12 percent c. A$ 100 perpetuity discounted back to the ...Albert Pujols hit 47 home runs in 2009. If his home- run output grew at a rate of 12 percent per year, what would it have been over the following 5 years?
Post your question