Sharon is planning for her retirement 34 years from now. She plans to invest $5,600 per year for the first 7 years, $7,800 per year forthe next 11 years, and $14,000 per year for the remaining 16 years. All of the investments will be made at the end of the year. If Sharoncan earn 10% annual return on her investments, what will her retirement fund amount to at the end of 34 years? (Round factor values to5 decimal places, eg. 1.25124 and final answer to 2 decimal places, eg. 458,581.25)Click here to view factor tablesAmount of retirement fund$Save for LaterAAttempts: 0 of 1 used Submit Answer

Here's a detailed calculation for better understanding. Sharon's investment schedule:$5,600 per year…

Answered: Sharon is planning for her retirement…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 10P

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Laura is planning for her retirement 34 years from now. She plans to invest $4,100 per year for the first 7 years, $8,600 per year for the next 11 years, and $13,700 per year for the remaining 16 years. All of the investments will be made at the end of the year. If Laura can earn 10% annual return on her investments, what will her retirement fund amount to at the end of 34 years? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 2 decimal places, eg. 458,581.25.) Click here to view factor tables Amount of retirement fund $
An engineer planning for her retirement will deposit 15% of her salary each year into a stock fund. If her salary this year is $88000(end of year 1) and she expects her salary to increase by 12% each year, what will be the future worth of the fund after 16 years if it earns 10% per year?
Carla Lopez deposits $5, 200 a year into her retirement account. If these funds have an average eaning of 6 percent over the 40 years until her retirement, what will be the value of her retirement account?
Claire Fitch is planning to begin an individual retirement program in which she will Invest $2,800 at the end of each year. Fitch plans to retire after making 30 annual Investments in the program earning a return of 8%. What is the value of the program on the date of the last payment (30 years from the present)? (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round your "FV of an Ordinary Annulty" to 4 decimal places and final answer to the nearest whole dollar.) Periodic Cash Flow x f (FV of an Ordinary Annuity) Future Value
Sarah Wiggum would like to make a single investment and have $2.3 million at the time of her retirement in 30 years. She has found a mutual fund that will earn 5 percent annually. How much will Sarah have to invest today? If Sarah invests that amount and could earn a 13 percent annual return, how soon could she retire, assuming she is still going to retire when she has $2.3 million?
Suzette is receiving $10,000 today, $15,000 one year from today, and $25,000 four years from today. She will immediately invest these funds for retirement. If she earns 9.6 percent on her investments, how much will she have in savings 30 years from today?
Katrina is planning to make an additional investment at the end of each year for his retirement in 20 years. Katrina plans to invest $5,000 each year for the first 5 years, $8,000 each year for the next 5 years, and $ 12,000 each year for the remaining 10 years. If the rate of return of 11 percent can be earned in these investments, how much money will Katrina have at the end of 20 years? (Answer must have step by step explainations.)
Claire Fitch is planning to begin an individual retirement program in which she will invest $2.200 at the end of each year. Fitch plans to retire after making 30 annual investments in the program earning a return of 10%. What is the value of the program on the date of the last payment (30 years from the present)? (PV of $1. EV of $1, PVA of $1. and EVA of 5) (Use appropriate factor(s) from the tables provided. Round your "FV of an Ordinary Annuity" to 4 decimal places and final answer to the nearest whole dollar)
Claire Fitch is planning to begin an individual retirement program in which she will invest $2,200 at the end of each year. Fitch plans to retire after making 30 annual investments in the program earning a return of 10%. What is the value of the program on the date of the last payment (30 years from the present)? (PV of $1. FV of $1. PVA of $1, and EVA of $1) (Use appropriate factor(s) from the tables provided. Round your "FV of an Ordinary Annuity" to 4 decimal places and final answer to the nearest whole dollar.) Periodic Cash Flow f(FV of an Ordinary Annuity) Future Value
(Present value) Sarah Wiggum would like to make a single investment and have $2.0 million at the time of her retirement in 35 years. She has found a mutual fund that will earn 4 percent annually. How much will Sarah have to invest today? If Sarah earned an annual return of 14 percent, how soon could she then retire?
Jamie wants to have $800,000 for her retirement in 25 years. How much should she save annually if she expects to earn 10% on her investments?
Heather is planning to retire in 7 years. She will then need an income of $1444 at the beginning of every month for the subsequent 25 years. She is going to make one investment today to provide all of the money she will eventually collect. Her investments will earn 7.33% compounded monthly. How much should she invest today?

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