Bob makes his first $700 deposit into an IRA earning 6.6%compounded annually on his 24th birthday and his last $700 depositon his 36th Birthday ?(13 equal deposits in? all). With noadditional? deposits, the money in the IRA continues to earn 6.6%interest compounded annually until Bob retires on his 65thbirthday. How much is in the IRA when Bob? retires?

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Sixta KovacekLv2

31 Aug 2018

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________1. Randy Hill wants to retire in 10 years with $500,000.He can earn 6% per year on his investments. Compute how much heneeds to deposit each year to reach his goal. ________2. Joe Morriswants to start a savings fund from which his grandson couldwithdraw $3,000 a year for 10 years. The fund would earn 5%interest. Compute the amount Joe would have to deposit now to reachhis goal. ________3. Your rich aunt has offered to finance fiveyears of college for you. The annual cost will be $30,000 and theinterest rate is 5%. Compute how much money your aunt must give younow to finance the five years of college. ________4. Assume yourfather is 55 and wants to retire at age 65 with $300,000 in aretirement fund. The interest rate is 8%. Compute how much he mustdeposit at age 55 to accumulate the $300,000. ________ 5. Assumeyou want to have $25,000 for a down payment for a house in fiveyears. Compute the amount you would need to deposit today. Yourmoney will earn 5 percent. ________ 6. Jeff Renfro is planning togo to graduate school (Ph.D) in a program of study that will takesix years. Jeff wants to have $35,000 available each year forvarious school and living expenses. He can earn 5 percent on hismoney. Compute how much he must deposit at the start of his studiesto be able to withdraw $35,000 a year for six years. ________7.Angie Baden deposits $10,000 a year into her retirement account.These funds will earn 8 percent over the 10 years until herretirement. Compute what the value of her retirement account willbe when she retires. ________8. Assume you borrow $80,000 with a 7percent interest rate, to be repaid in seven equal yearly payments.Compute the amount of each payment.

tanbat462

Mary has been working for a university for almost 25 years andis now approaching retirement. She wants to address severalfinancial issues before her retirement and has asked you to helpher resolve the situations below. Her assignment to you is toprovide a 4-5 page report, addressing each of the following issuesseparately. You are to show all your calculations and provide adetailed explanation for each issue. Issue A: For the last 19years, Mary has been depositing $500 in her savings account , whichhas earned 5% per year, compounded annually and is expected tocontinue paying that amount. Mary will make one more $500 depositone year from today. If Mary closes the account right after shemakes the last deposit, how much will this account be worth at thattime? Issue B: Mary has been working at the university for 25years, with an excellent record of service. As a result, the boardwants to reward her with a bonus to her retirement package. Theyare offering her $75,000 a year for 20 years, starting one yearfrom her retirement date and each year for 19 years after thatdate. Mary would prefer a one-time payment the day after sheretires. What would this amount be if the appropriate interest rateis 7%? Issue C: Maryâs replacement is unexpectedly hired away byanother school, and Mary is asked to stay in her position foranother three years. The board assumes the bonus should stay thesame, but Mary knows the present value of her bonus will change.What would be the present value of her deferred annuity? Issue D:Mary wants to help pay for her granddaughter Bethâs education. Shehas decided to pay for half of the tuition costs at StateUniversity, which are now $11,000 per year. Tuition is expected toincrease at a rate of 7% per year into the foreseeable future. Bethjust had her 12th birthday. Beth plans to start college on her 18thbirthday and finish in four years. Mary will make a deposit todayand continue making deposits each year until Beth starts college.The account will earn 4% interest, compounded annually. How muchmust Maryâs deposits be each year in order to pay half of Bethâstuition at the beginning of each school each year?

rosewildebeest504

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4. A Credit Card had the following purchases in the month ofJune. If the rate attached to the card is 21.5% and there have beenno other purchases, answer the following questions.
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