Question: You would like to start saving for retirement. Assuming you are now 20 years old and you want to retire at age 50, you

You would like to start saving for retirement. Assuming you are now

You would like to start saving for retirement. Assuming you are now 20 years old and you want to retire at age 50, you have 30 years to watch your investment grow. You decide to invest in the stock market, which has earned about 10% per year over the past 80 years and is expected to continue at this rate. You decide to invest $2,000 at the end of each year for the next 30 years. Required: Calculate how much your accumulated investment is expected to be in 30 years. (FV of $1. PV of $1, FVA of $1, and PVA of $1) (Use tables, Excel, or a financial calculator. Round your answer to 2 decimal places.) Accumulated investment amount T

Step by Step Solution

★★★★★

3.30 Rating (153 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

To calculate the accumulated investment amount in 30 years we can use the Future V... 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!

John Parsons (123-45-6781) and George Smith (123-45-6782) are 70% and 30% owners, respectively, of Premium, Inc. (11-1111120), a candy company located at 1005 16th Street, Cut and Shoot, TX 77303....

Ned Kelly holds a portfolio consisting of four assets: A, B, C, and D. If Ned is trading according to the CAPM and the risk-free rate is 2.5%, which of his holdings should he sell? Market Asset A...

You would like to start saving for retirement. Assuming you are now 25 years old and you want to retire at age 55, you have 30 years to watch your investment grow. You decide to invest in the stock...

6 (18 points): Two-Sample Hypothesis Test for the Mean (Independent Samples) Do math students in Dr. Buckeye's class (Group 1) perform the same on a standardized assessment test as those in Dr....

Exercise C-7 Calculate the future value of an annuity (LOC-3) You would like to start saving for retirement. Assuming you are now 20 years old and you want to retire at age 50, you have 30 years to...

Exercise C-6 Calculate the future value of an annuity (LOC-3) GMG Studios plans to invest $48,000 at the end of each year for the next four years. There are three investment options available. Option...

You would like to start saving for retirement. Assuming you are now 20 years old and want to retire at age 50, you have 30 years to watch your investment grow. You decide to invest in the stock...

Exerclse 5-11 (Algo) Future value; ordlnary annulty (LO 5-7) You would like to start saving for retirement. Assuming you are now 20 years old and want to retire at age 50 , you have 30 years to watch...

Refer to the problem of the two coupled oscillators discussed in Section 12.2. Show that the total energy of the system is constant. (Calculate the kinetic energy of each of the particles and the...

Excessive blood loss can be rectified by blood transfusion in which blood from one person donor, is transferred into the patients blood stream. Complete the table. (i) Group A B AB O Can donate blood...

Correct estimation of the time and resources required for aproject is vital to understanding the commitment needed tosuccessfully complete a project. Poor estimates can lead toproject failures and...

On December 31, 2011, Debenham Corporation sold for $15,000 an old machine having an original cost of $84,000 and a book value of $9,000. The terms of the sale were as follows: $3,000 down payment,...

Slawson is a publicly traded Argentine company with three operating companies located in Argentina, the United States, and Germany. Slawsons corporate headquarters in Buenos Aires oversees the three...

1. Draw the bricks and mortar process stages by which hard copy books are created, distributed, and sold in retail stores. How does each player in the value chain make money? (You can use the...

Anderson & Little is an advertising agency. The firm uses a job cost system in which each client is a different "job." Anderson & Little traces direct labor, software licensing costs, and travel...

EasyPacks manufactures backpacks. Its plant records include the following materials-related transactions: Purchases of canvas (on...

6 Theory of Machines 5. A shaft carries five masses A, B, C, D and E which revolve at the same radius in planes which are equidistant from one another. The magnitude of the masses in planes A, C and...

The following stockholders equity accounts arranged alphabetically are in the ledger of Tyner Corporation at December 31, 2010. Common Stock ($5 stated value) ........... $2,000,000 Paid-in Capital...

Presented below is information related to the sole proprietorship of Kevin Johnson, attorney. Legal service revenue2010.......$350,000 Total expenses2010......... 211,000 Assets, January 1,...

Lovitz Company is planning to produce 2,000 units of product in 2010. Each unit requires 3 pounds of materials at $6 per pound and a half hour of labor at $14 per hour. The overhead rate is 70% of...

2. Three classic theories of emotion attempt to organize the relationships between physical reactions and conscious awareness of emotions. The JamesLange theory suggests that autonomic responses are...

3. Affective neuroscientists debate whether emotional states are discrete and inborn or dimensional and cognitively constructed. The contributions of emotion to decision making are also the subject...

5. We identify people with math and verbal difficulties as having a learning disability. Why dont we also have terms such as having a musical disability or an athletic disability?