Question: 1A ) To save for your future retirement, you decide to save $4500 at the end of the next 25 years and $6000 at the
1A ) To save for your future retirement, you decide to save $4500 at the end of the next 25 years and $6000 at the end of each year for the following 15 years, 40 annual deposits in all, in your IRA. How much will you in your last deposit from now assuming the account earns 8% compounded annually? (Show what you put for PV, N, 1/Y, FV AND PMT both times)
1.) Homer Simpson earned $100,000 ten years ago as Springfield Town Jester and street performer. He deposited this money 10 years ago into an account paying 7.5 percent compounded annually and has deposited nothing since then. Now he wants to deposit $4,000 at the BEGINNING of each year for 15 years in the same account paying 7.5% compounded annually. How much will Homer have in 15 years?
2.) Mr Burns age 90 wants to retire in 10 years at age 100 to steal candy from babies full time and wants an annual retirement income of $100 million per year the Begining of each year for 15 years. He has $50 million to invest into a special offshore account today and will make 10 additional equal ends of the year deposits into this special retirement account. How much will Mr. Burns annual savings deposits need to be if the account earns 20% combined annually before and after retirement?
3.) To save for your future retirement, you decide to save $400 at the end of the next 25 years and $600 a the end of each year following 15 years, 40 annual deposits in al, in your IRA. How much will you in your IRA account immediately after your deposit 40 years from now assuming the account earns 8% compounded annually?
PLEASE SHOW ALL WORK. If possible show work on you would enter on BA II Plus calculator
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