Max Meyer is 59 years old. He has always earned a good income and has always...

  

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Max Meyer is 59 years old. He has always earned a good income and has always lived very well. As a result, Max has some wonderful memories but, unfortunately, no retirement savings. Now, with six years to go before retirement, he has vowed to "catch up". Max wants to have $200,000 accumulated when he starts retirement. He plans to save $1,800 at the END of each month until then and estimates that he can earn 7% compounded monthly. Will Max reach his goal in time for his planned retirement date? N= i/y PV= PMT= FV= Remember to show 5 decimal places! 1) How much will he have accumulated if he invests according to his plan? 2) Will this meet his goal? (Move the rounded rectangle to make your selection.) or NO YES Compute the amount that he is over or short of his goal. Show work here: c) Using the $1,800 monthly contribution amount, approximately how long (in years) would it take Max to achieve the $200,000 goal at the 7% rate, compounded monthly? (enter PMT as a negative.) N= i/y= PV= PMT= FV What did you compute for N? What unit is N? How many years? Remember to enter payment as a negative amount! Show work here: d) Assuming he could somehow increase his rate of return, what annual rate would Max have to achieve in order to reach his goal in the original time frame of six years? (nearest 100th of a percent). Keep on END. What did you compute for I/Y? N= i/y= PV= PMT= FV= Remember to enter payment as a negative amount! What unit is I/Y? Annual Rate: Show work: Max Meyer is 59 years old. He has always earned a good income and has always lived very well. As a result, Max has some wonderful memories but, unfortunately, no retirement savings. Now, with six years to go before retirement, he has vowed to "catch up". Max wants to have $200,000 accumulated when he starts retirement. He plans to save $1,800 at the END of each month until then and estimates that he can earn 7% compounded monthly. Will Max reach his goal in time for his planned retirement date? N= i/y PV= PMT= FV= Remember to show 5 decimal places! 1) How much will he have accumulated if he invests according to his plan? 2) Will this meet his goal? (Move the rounded rectangle to make your selection.) or NO YES Compute the amount that he is over or short of his goal. Show work here: c) Using the $1,800 monthly contribution amount, approximately how long (in years) would it take Max to achieve the $200,000 goal at the 7% rate, compounded monthly? (enter PMT as a negative.) N= i/y= PV= PMT= FV What did you compute for N? What unit is N? How many years? Remember to enter payment as a negative amount! Show work here: d) Assuming he could somehow increase his rate of return, what annual rate would Max have to achieve in order to reach his goal in the original time frame of six years? (nearest 100th of a percent). Keep on END. What did you compute for I/Y? N= i/y= PV= PMT= FV= Remember to enter payment as a negative amount! What unit is I/Y? Annual Rate: Show work:

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To determine if Max will reach his goal of 200000 by his planned retirement date we can calculate th... View the full answer