Question: John is 65 years old. John first started to save for retirement when he was 20 years old, when he put an equal amount of

John is 65 years old. John first started to save for retirement when he was 20 years old, when he put an equal amount of money each year on his birthday starting on his 20th birthday until his 39th birthday. On his 40th birthday and up to and including his 65th birthday, he deposited $9,000 per year into this account. Today (at age 65) John has accumulated $3,000,000 in his retirement savings account. If his account has earned a rate of 8% per year for the last 45 years, how much did john deposit each year from his 20th to his 39th birthday?

Step by Step Solution

★★★★★

3.42 Rating (158 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

First assume that x amount deposited from 20th to 39th for times earned 8 interest will ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

When tert-butyl bromide is heated with an equal amount of ethanol in an inert solvent, one of the products is ethyl tert-butyl ether. (a) What happens to the reaction rate if the concentration of...

Real Cash Flows you are planning to save for retirement over the next 30 years. To save for retirement, you will invest $700 a month in a stock account in real dollars and $300 a month in a bond...

Bruce is paying $25,000 each year on his mortgage with 10 years of payments left and the next payment in one year. In 6 years he will receive a lump sum payment of $40,000 which he will use to pay...

You recently met with your new clients, Laura and John Rockefeller. It was your first formal meeting; however, they requested that you combine the initial meeting with a data gathering session. The...

1. Suppose you own a farm that, if run efficiently, can produce corn according to the following transformation formula: 2 3 W1 = 90 I0 where I0 is the number of bushels of corn planted in date 0, and...

Consider three risk-free securities: a zero-coupon bond with a face value of $1,000 and 3 years to maturity, tradingat $711.78, an annuity that pays $1,000 in year 1 and year 2. The annuity costs...

Need to complete 10 homework but now i need 5 homework then after some time 5 homework more. Here it is attachment. Chapter 5 HW Questions [ALL OF THESE MUST BE DONE IN EXCEL] 1. Future value: Chuck...

Hello. Can you help with this four question problem? Case PRIVATE EQUITY CASE: MERGER CONSOLIDATION The questions below COMBINE the Ohio & Maryland PT acquisitions as if they are a single c Learning...

Answers needed for #3-4, 9, 11, 13-17, 19-22, 29-32, 35-37, 40 FI 3300 - CORPORATION FINANCE Take-Home Problem Set Three (THPS-3) Fall 2015 Directions: This problem set covers chapters 6 and 7 in the...

FV , PV & RETURNS 1 a. At the end of 10 years, how much is an initial deposit of $100 worth, assuming an interest rate of 10 percent compounded (1) annually? (2) semi-annually? (3) quarterly? (4)...

the net income or loss for an accounting periods is the balance of the _______ account before it is closed

Hansell Company's management wants to prepare budgets for one of its products, Duraflex, for July 2019. The firm sells the product for $84 per unit and has the following expected sales (in units) for...

The vision statement describes the destination or the future state, but it is the _____ that describes the journey you take to get there. Select an answer: Kirkpatrick model McKinsey 7S model Target...

There are two masses with mass, 2M and M. Which of the following statements is true? Group of answer choices The center of mass is closer to "2m" mass than "m" mass The center of mass is exactly...

Laurie needs to set up her operations to produce an order of 2,000 frozen pies for Thanksgiving. Considering the time to setup her process, she will have 10 working days to make the pies. She plans...

On January 1, 2022, Paxon Corporation acquired all of the outstanding common stock of Saxon Company for $2 billion cash. The prior to the combination, are shown below: Balance Sheets (in millions)...

Q2 Small Business Takes Big Hit With Load Shedding Small business may be the backbone of the South African economy, but its bearing the brunt of the energy crisis. Paying for generators, fuel, and...

Suppose the market is semistrong form efficient. Can you expect to earn excess returns if you make trades based on? a. Your brokers information about record earnings for a stock? b. Rumors about a...

Which of the following ethers can be formed in good yield by condensation of the corresponding alcohols? For those that cannot be formed by condensation, suggest an alternative method that will work....

Show what amines and carbonyl compounds combine to give the following derivatives. (a) (b) (c) (d) (e) (f) Ph-CH=N-NH-C-NH, NOH N NHPh HNN : O

Calculate the pH of the following solutions. (a) 5.00 g of HBr in 100 mL of aqueous solution (b) 1.50 g of NaOH in 50 mL of aqueous solution

1. In this chapter, we have learned how emotions are expressed universally in our faces. Do you think emotions can be recognized through vocal cues? How would you design a study to test your ideas?

1. Do bilinguals really act differently in all kinds of contexts? In which contexts may they act the same, and in which may their actions differ depending on the language they speak? Design a study...

3. How do you express yourself? Do you think your way of expressing yourself and your emotions is adaptive in your culture? Would it be adaptive in other cultures? Why or why not?