1: Retirement from Savings
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Last updated over 1 year ago
6 questions
1
Sam is 27 years old. He is planning on retiring after working for 40 years. He opens an IRA with an APR of 6% compounded monthly. If he makes monthly contributions of $500 to the account, how much will he have in the account when he is ready to retire?
Sam is 27 years old. He is planning on retiring after working for 40 years. He opens an IRA with an APR of 6% compounded monthly. If he makes monthly contributions of $500 to the account, how much will he have in the account when he is ready to retire?
1
How much MORE money would Sam have in the account if he would have opened the account at age 20 and followed all the same conditions?(HINT! Figure out how much he would make if t=47, then determine the difference between the two answers)
How much MORE money would Sam have in the account if he would have opened the account at age 20 and followed all the same conditions?
(HINT! Figure out how much he would make if t=47, then determine the difference between the two answers)
1
Suppose Sam wanted to play it safe and just stash his money away in a savings account. He is 27 and plans to fund the account for 40 years by putting $500 in it per month.
How much money did Sam put in the account himself?(HINT! To find how much he put in himself, calculate 500*12(b/c 12 months a year)*40(b/c 40 years))
Suppose Sam wanted to play it safe and just stash his money away in a savings account. He is 27 and plans to fund the account for 40 years by putting $500 in it per month.
How much money did Sam put in the account himself?
(HINT! To find how much he put in himself, calculate 500*12(b/c 12 months a year)*40(b/c 40 years))
1
Suppose Sam wanted to play it safe and just stash his money away in a savings account. The high yield savings account has a 1.7% interest rate, compounded monthly. If he is 27 and plans to fund the account for 40 years by putting $500 in it per month, how much will he have in the account when he is ready to retire?
Suppose Sam wanted to play it safe and just stash his money away in a savings account. The high yield savings account has a 1.7% interest rate, compounded monthly. If he is 27 and plans to fund the account for 40 years by putting $500 in it per month, how much will he have in the account when he is ready to retire?
1
Mal is 35 years old. She plans to open a retirement account. She wants to have $1,000,000 in the account when she retires at age 65. How much must she deposit each month into an account with an APR of 2.25%, compounded weekly to reach her goal?
Mal is 35 years old. She plans to open a retirement account. She wants to have $1,000,000 in the account when she retires at age 65. How much must she deposit each month into an account with an APR of 2.25%, compounded weekly to reach her goal?
1
Cleo makes $80,000 a year. Her company allows her to put in 2% of her salary into a 401K which they will match. How much will she have in her 401K after 1 year? (Before interest and taxes are considered)
Cleo makes $80,000 a year. Her company allows her to put in 2% of her salary into a 401K which they will match. How much will she have in her 401K after 1 year? (Before interest and taxes are considered)