a) You invest $4,000 at the end of every year for 35-years of your career. If...
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a) You invest $4,000 at the end of every year for 35-years of your career. If you want $850,000 in savings at retirement, what interest rate must the investment eam? [If you use goal seek you must show the screen shot] b) Given the retirement cashflows below, what is the equivalent Future Worth at 10% interest? Tip: for future worth analysis be sure to use the right time period in the equation/function 8% year Cashflow 0 $ (500) 1 $ 250 2 $ 250 3 $ 250 4 $ 250 5 $ 250 6 $ 250 7 $ 250 8 $ 250 9 $ 250 10 $ (150) 11 $ 250 12 $ 250 13 $ 250 14 $ 250 15 $ 250 16 $ 250 17 $ 250 18 $ 250 19 $ 250 20 $ 220 a) You invest $4,000 at the end of every year for 35-years of your career. If you want $850,000 in savings at retirement, what interest rate must the investment eam? [If you use goal seek you must show the screen shot] b) Given the retirement cashflows below, what is the equivalent Future Worth at 10% interest? Tip: for future worth analysis be sure to use the right time period in the equation/function 8% year Cashflow 0 $ (500) 1 $ 250 2 $ 250 3 $ 250 4 $ 250 5 $ 250 6 $ 250 7 $ 250 8 $ 250 9 $ 250 10 $ (150) 11 $ 250 12 $ 250 13 $ 250 14 $ 250 15 $ 250 16 $ 250 17 $ 250 18 $ 250 19 $ 250 20 $ 220
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a To determine the interest rate required to achieve a savings goal of 850000 at retirement given an annual investment of 4000 for 35 years we can use ... View the full answer
Related Book For
Personal Finance Turning Money into Wealth
ISBN: 978-0134730363
8th edition
Authors: Arthur J. Keown
Posted Date:
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