Finance

[kurlee07]

Having a hard time with this one

retiring in 12 years and currently have 50000.00 in savings at 5%, and 100,000 in stock at 10%, u add 30,000 at the end of each year to the stock. how much will you have in your retirement fund? what rate of return must you earn on your retirement fund if u want to withdrawl 102,000 per year for the next 15 years?

thanks

 

[kurlee07]

this one i am working on,
3000 annually at 8%
a. in account at 65 if saving starts at 40 answer: 219318.00 =fv(.08/1,25*1,-3000)
b. retires at 70 and continues contributions answer: 120531 =fv(.08/1,30*1,-3000)-219318
c. retires at 70, discontinues saving at 65, answer: 17671, but not sure the formula. I tried several ways

thanks

 

[Denis]

retiring in 12 years and currently have 50000.00 in savings at 5%, and 100,000 in stock at 10%, u add 30,000 at the end of each year to the stock. how much will you have in your retirement fund? what rate of return must you earn on your retirement fund if u want to withdrawl 102,000 per year for the next 15 years?
thanks

What formulas are you using?
Show your work.

 

[Denis]

3000 annually at 8%
a. in account at 65 if saving starts at 40 answer: 219318.00 =fv(.08/1,25*1,-3000)
b. retires at 70 and continues contributions answer: 120531 =fv(.08/1,30*1,-3000)-219318
c. retires at 70, discontinues saving at 65, answer: 17671, but not sure the formula. I tried several ways
thanks

WHY is you answer for a. and b. the same?!
Do you know what you're doing? We can't tell: you show little or no work.

 

[kurlee07]

3000 annually at 8%
a. in account at 65 if saving starts at 40 answer: 219318.00 =fv(.08/1,25*1,-3000)
b. retires at 70 and continues contributions answer: 120531 =fv(.08/1,30*1,-3000)-219318
c. retires at 70, discontinues saving at 65, answer: 17671, but not sure the formula. I tried several ways
thanks

WHY is you answer for a. and b. the same?!
Do you know what you're doing? We can't tell: you show little or no work.

answer and A and B are not the same, they are different. or the answers would be the same, which they are not. no i dont know what im doing, that is why i am asking for help...

 

[Denis]

.... no i dont know what im doing, that is why i am asking for help...

These are your attempts:
a. in account at 65 if saving starts at 40 answer: 219318.00 =fv(.08/1,25*1,-3000)
b. retires at 70 and continues contributions answer: 120531 =fv(.08/1,30*1,-3000)-219318
c. retires at 70, discontinues saving at 65, answer: 17671, but not sure the formula. I tried several ways

Part a. is CORRECT ! (so you KNOW what you're doing!)

Part b. is just as easy: WHY are you subtracting 219318 ;
answer HAS TO BE greater than 219318, since he's contributing for 5 more years!

that's why I'm not sure where you're at :shock: