Question: PLEASE SOLVE USING EXCEL AND SHOW THE STEPS (a) Rae started saving money at an early age (10 years old). Each month, her mom put

PLEASE SOLVE USING EXCEL AND SHOW THE STEPS

(a)

Rae started saving money at an early age (10 years old). Each month, her mom put the money in an account that compounded annually at 5.75%. Now Rae is 23 and has $6936.72. How much did she save each month? (Assume she saved for a full 13 years).

(b)

You have just started a new job that offers a retirement savings account. You have two options:

You can invest 5% of your monthly wages at 2% OR You can invest 4% of your monthly wages at 4%. Both are compounded monthly.

Assume that you will always make $45,000 annually, which plan will give you a better return after 25 years and how much will you have saved with the plan?

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!

1. You are purchasing a home for $145,000.In order to get a 30 year fixed mortgage rate of 4.5%, the bank requires a 20% down payment. b.What is the monthly payment? 3. How much interest is paid over...

Please solve using excel and show detailed steps and clearly state the reasonings as well. Thank you. Rachel is 35 years old. She plans on retiring in 25 years when she will be 60 years old. Rachel...

please solve using excel and show calculations for a positive review. Rachel is 45 years old. She plans on retiring in 15 years when she will be 60 years old. Rachel believes she will live until she...

Please solve using excel and provide excel screenshots with formulatext. I don't need written description, just excel screenshots. Thanks. Rachel is 35 years old. She plans on retiring in 25 years...

from the following podcast pick one of the podcasts and briefly provide some thoughts on it in the context of the topic of leadership. PODCAST Support for this podcast and the following message comes...

now//You are asked to price some options on KYC stock. KYC's stock price can go up by 15 percent every year, or down by 10 percent. Both outcomes are equally likely. The risk free rate is 5 percent,...

KYC's stock price can go up by 15 percent every year, or down by 10 percent. Both outcomes are equally likely. The risk free rate is 5 percent, and the current stock price of KYC is 100. (a) Price a...

Here is the case to analyse: Rivian Automotive, Inc. "The change over the next two decades from non-connected, combustion-powered vehicles to electric, con- nected, and increasingly autonomous...

Please help me to answer the attached files ................................... INVESTMENT AND PORTFOLIO MANAGEMENT COURSE ASSESSMENT 1 Submission deadline without penalties is 12 October 2017....

Construct a systems flowchart based on the narrative and the output from Problems 4- 4 through 4- 6. Use Microsoft Visio or other diagramming software.

When will bonds sell at a premium and discount? Calculate bond interest under SL method. Impact of amortization of bond premium/discount on interest expense. Give an example journal entry for...

Melanie, a homeowner, has mortgage interest of $3000, RRSP contributions of $1500, and charitable contributions of $500. According to her filing status, a basic personal amount of $11 138 is allowed....

Discuss the policy statement concept and identify three focus areas / procedures where a clearpolicy statement / operating procedure

Design an internal skills transfer system through tutoring.

Maintain the efficiency of the skills transfer system beyond the launch phase.

What can other subsidiaries around the world and the global headquarters learn from the Austrian case?