Question: Please explain the formula used and solve You are currently 35 years old and would like to retire at 65. You currently have no debt

Please explain the formula used and solve

You are currently 35 years old and would like to retire at 65. You currently have no debt or savings.If you start making monthly deposits tomorrow in an index fund of the Wilshire 5000 and assume it will return 8% compounded monthly, how much must you save each month to retire with $1.5 million?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

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 Finance Questions!

How do you calculate mean,median, mode, standard deviation, rang, and 95% confidence interval in a descriptive data in excel?

Youve calculated values for an index over a four-year period as follows: Suppose you wanted the index to start at 1,000. What would the reindexed values be? Year 1: Year 2: Year 3: Year 4: 1,687...

PLEASE EXPLAIN AND SOLVE FOR SELECTION BELOW You are currently 35 years old and would like to retire at 65. You currently have no debt or savings.If you start making monthly deposits tomorrow in an...

Question 9 You are currently 35 years old and would like to retire at 65. You currently have no debt or savings. If you start making monthly deposits tomorrow in an index fund of the Wilshire 5000...

You are currently 35 years old and would like to retire at 65. You currently have no debt or savings. If you start making monthly deposits tomorrow in an index fund and assume it will return 8%...

Retirement planning, in a financial context, refers to the allocation of savings or revenue for future retirement. The goal of retirement planning is to achieve financial independence. Retirement is...

1.Consider a company subject to a corporate tax rate of 0.6.If the company has a debt ratio of 0.3, and an unleveraged beta of 0.8, what is the company's leveraged beta? 2.What is the internal rate...

please input what you would type into each cell to get the answer 1 J K L M N o P o R 7 Age Question 3. You are currently 50 years old and intend to retire at age 65. To make your retirement easier,...

1. A stock is trading for 24, and just paid a dividend of 1.3 which is expected to grow at a fraction 0.18 per year.If Goldman Sacs charges a fraction 0.17 as a flotation cost, what is the required...

The company purchased the following securities during Year 1: In Year 2, the company reclassified both of these securities. Security A was reclassified as available for sale; the fair value of...

Ali Salem is the manager of a small chocolate company located in Abu Dhabi, and it is a family business. His father established it as a small chocolate shop in 1983. The chocolate shop has...

(4) Derive the conclusion of the following symbolized arguments. Use conditional proof or indirect proof as needed. 1. (x)(y)(Ax By) / (x)Ax (y)By

3. Give the IUPAC name for each compound. (a) CH3NHCH2CH3 (d) N' (b) CH3 (e) N. (c) CH2CH3 () CH3 N. CH3 H2NCH2CH2CHNH2 HIN

What are the various short- and long-term sources of funds that firms can explore for raising funds to finance their various business and investment activities? Do you feel that Covid-19 has affected...

Your rich godfather has offered you a choice of one of the three following alternatives: $10,000 now; $2,000 a year for eight years; or $24,000 at the end of eight years. Assuming you could earn 11...

1. Your uncle offers you a choice of $30,000 in 50 years or $95 today. If money is discounted at 12 percent, which should you choose? 2. If you invest $2,000 a year in a retirement account, how much...

Design a minimum-mass symmetric three-bar truss (the area of member 1 and that of member 3 are the same) to support a load P, as was shown in Fig. 2.9. The following notation may be used: Pu = P cos...

4. An Email Inquiring about Implementation of a Paperless Office Assume that you are the vice-president in charge of customer relations in a company that installs specialized telecommunications...

Calculate control limits for an S chart from the refractive index data of Exercise 9. Does the process appear to be in control with respect to variability? Why or why not?

When S2 is the sample variance of a normal random sample, (n 1)S2 /2 has a chi-squared distribution with n 1 df, so P 2 .999,n1 ( n 2 1)S2 2 .001,n1 .998 from which P S2 .998 This suggests...