8. A couple decided to invest P150,000 annually for only the first eight years of their marriage. The first payment was made when they were 25 years old. If the annual interest rate is 10%, how much money from the investment will they have at age 65?
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Note: Solve and draw its cashflow diagram.
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- Assume that a couple invests $1000 upon the birth of their daughter. Assume that the investment earns 6.8% compounded annually. What will the investment be worth on the daughter’s 18th birthday?6. If you desire to have $80,000 for a down payment for a house in 7 years, what amount would you need to deposit each year for these 7 years? Assume that your money will earn 10 percent per year. 7. Kate deposits $9,900 each yearinto her retirement account. If these funds have an average earning of 11 percent over the 40 years until her retirement, what will be the value of her retirement account?A young couple plans on investing 12.00% of their joint income every year until retirement. (31.00 years). Their joint income in their first year of work will be $89,531.00. They believe their joint income will increase by 2.00% per year during their working life. Their investments will earn 7.00% per year on average. They plan on their retirement lasting 25.00 years. They want to leave $134,412.00 to the American Cancer Society at the end of their retirement. Based on these assumptions, what yearly withdrawal can they make during retirement? (assume that the withdrawals are at the beginning of the year) Submit Answer format: Currency: Round to: 2 decimal places. Show Hint
- Leon and Heidi decided to invest $3,000 annually for only the first eight years of their marriage. The first payment was made at age 25. If the annual interest rate is 10%, how much accumulated interest and principal will they have at age 65?c). If the father decides to deposit a single amount now instead of K300 at the end of each month, how much should he deposit now at 12% per year to enable him pay for his sons's birthdayGinger Rogers deposits $3,000 a year into her retirement account. If these funds have an average earning of 8 percent over the 40 years until her retirement, what will be the value of her retirement account?
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- Craig and sally just got married .they want to have $750.000 in a retirement account in 40 years . How much should they deposit at the end of every 6 months sat 2% compounded semiannually in order to reach this goal?A couple will retire in 40 years; they plan to spend about $27,000 a year in retirement, which should last about 20 years. They believe that they can earn 7% interest on retirement savings. a. If they make annual payments into a savings plan, how much will they need to save each year? Assume the first payment comes in 1 year. b. How would the answer to part (a) change if the couple also realize that in 15 years they will need to spend $57,000 on their child’s college education?Leon and Heidi decided to invest $3,250 annually for only the first nine years of their marriage. The first payment was made at age 20. If the annual interest rate is 9%, how much accumulated interest and principal will they have at age 65?