How much will be available in your account

Reference no: EM132045767

Question: You want to save some money for your two dream vacations as well as have some money available during your retirement years. Today is your 35th birthday. You want to make annual deposit of $10,000 starting on your 40th birthday, all the way to your 65th birthday. (Please note your last deposit in on your 65th birthday). Your first vacation (to Thailand) will occur on your 50th birthday where you need to withdraw $15,000 for that trip (on your 50th birthday). Similarly, your second vacation (to Australia) will occur on your 60th birthday where you need to withdraw $20,000 for that trip (on your 60th birthday). If your bank pays special interest of 6%, compounded annually on these deposits. How much will be available in your account on your 66th birthday (after you accounted for two withdrawals on your 50th birthday and 60th birthday)?

Reference no: EM132045767

Questions Cloud

Calculate the net benefit of outsourcing the bookkeeping : The bookkeeper's wages and fringe benefits amount to $15 per hour, Calculate the net benefit (cost) of outsourcing the bookkeeping

Discuss the effect of global political uncertainty : Post an analysis of the financial and nonfinancial factors that influence foreign currency risk. In your analysis, do the following: Discuss the effect.

Calculate the payment first : Some home loans involve "points," which are fees charged by the lender. Each point charged means that the borrower must pay 1% of the loan amount as a fee.

Laboratory frame of reference : A body of mass m1 and velocity v1 collides with a body of mass m2 at rest.

How much will be available in your account : You want to save some money for your two dream vacations as well as have some money available during your retirement years. Today is your 35th birthday.

What are the primary sources of tax law : Suppose you have a concern about taking a particular position on a tax return. What are the primary sources of tax law

Determine the proposal internal rate of return : Apache Junction Company is evaluating a capital expenditure proposal that requires an initial investment of $34,520, has predicted cash inflows of $8,000.

Calculate the velocity of the knife relative to stationary : Calculate the velocity of the knife relative to the stationary Observer on the shore.

What is the percentage cost of preferred stock : Plummer industries plans to issue a $100 par perpetual preferred stock with a fixed annual dividend of 12 percent of par. It would sell for $96.60.

User Account

All Pages