How large must the annual deposits

Reference no: EM131111586

To supplement your planned retirement in exactly 42 years, you estimate that you need to accumulate $220,000 by the end of 42 years from today. You plan to make equal, annual, end-of-year deposits into an account paying 8% annual interest.

a. How large must the annual deposits be to create the $220,000 fund by the end of 42 years?

b. If you can afford to deposit only $600 per year into the account, how much will you have accumulated by the end of the forty-second year?

Reference no: EM131111586

Questions Cloud

How are these rights and due process : It talks about this in a doctrine called Selective Incorporation of the Bill of Rights. It outlines the rights that pertain to the state governments via the 14th amendment

Compare and contrast the ideology and practice : Compare and contrast the ideology and practice (style) of community policing with the legalistic style of policing.

Balance in the fund after twelve years : Payments of $360 are made into a fund at the end of every three months for twelve years. The fund earns interest at 7% compounded quarterly. a) What will be the balance in the fund after twelve years?

Discuss and address any laws pertaining : Discuss public trust laws that deal with the embezzlement of public funds, fraud of public funds, jury tampering, election fraud, and so forth. You have decided to research the topic and write a short 2-page paper to become knowledgeable on the to..

How large must the annual deposits : How large must the annual deposits be to create the $220,000 fund by the end of 42 years? If you can afford to deposit only $600 per year into the account, how much will you have accumulated by the end of the forty-second year?

Problem regarding the value of the annuity : Ed Sloan invests $1,600 at the beginning of each year for eight years into an account that pays 10% compounded semiannually. The value of the annuity due is?

What types of value would you consider when assigning value : What types of value would you consider when assigning "value" to a firm's stock or bond? What is the significance of each of the different types of value in the valuation process? Use examples to support your response.

Determine the amount of the equal annual end of year deposit : For each of the cases shown in the following table, determine the amount of the equal, annual, end-of-year deposits necessary to accumulate the given sum at the end of the specified period, assuming the stated annual interestrate.

Multiple regression equation to predict college : The equation used to predict college GPA (range 0-4.0) is ModifyingAbove y with caret equals 0.19 plus 0.53 x 1 plus 0.002 x 2,where x1is high school GPA (range 0-4.0) and x2is college board score (range 200-800). Use the multiple regression equat..

User Account

All Pages