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2 years ago

Daryl wishes to save money to provide for his retirement. He is now 30 years old and will be

Business

1 answer:

katovenus [111]2 years ago

4 0

Answer:

The answer is $138.92

Explanation:

Solution

Given that:

Daryl today's Age = 30

The Retirement Age = 64

The Total Monthly Deposits = ( 64 - 30 ) * 12 = 408

Now,

In case of 12% Compounded Monthly , Interest Rate per month = ( 12% / 12 ) = 1%

Then,

The Effective Interest Rate per year = ( 1 + 0.12/12 )12 - 1 = 1.1268 - 1 = 0.1268 = 12.68%

So,

The Present value of Annual 25 Years withdrawal of $100,000 at time of Retirement = $100,000 * PVAF ( 12.68% , 25 )

= $100,000 * 7.4864

= $748,642.20

The Present Value of Money for nephew at time of Retirement = $1,000,000 * PVF ( 12.68% , 25 )

= $1,000,000 * 0.050535

= $50,534.52

Now

The Present Value of total Amount Required at time of Retirement = $748,642.20 + $50,534.52

= $799,176.70

Now

The monthly deposit be X

Which is,

= X * FVAF ( 408 , 1% ) = $799,176.70

= X * 5752.85 = $799,176.70

X = $138.918

Therefore, Monthly Deposit for his retirement plan is = $138.92

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2 years ago

In what areas is Leslie's underspending hurting her budget?

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Answer:

The correct answer is both A and C

Explanation:

Solution

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2 years ago

A bond with a face value of $1,000 has 10 years until maturity, carries a coupon rate of 8.6%, and sells for $1,140. Interest is

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Answer:

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Explanation:

The value of the bond is the present value(PV) of the future cash receipts expected from the bond. The value is equal to present values of interest payment plus the redemption value (RV).

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