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Karen wishes to buy a gift for her parents' golden wedding anniversary. She decided to deposit a consistent amount of money every week into her savings account at an interest rate of 1.5% and made a decision not to withdraw any amount from the account.
If her goal is to save $350,000 for 3 years, how much money does she need to deposit each week to reach her goal?
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- Lara wishes to buy a gift for her parent's golden wedding anniversary. She decided to deposit a consistent amount of money every week into her savings account at an interest rate of 1.5% and made a decision not to withdraw any amount from the account. How much money will she have after 2 years if she decided to deposit $750 each week?Lisa plans to retire on her 61st birthday. On her 22nd birthday, Lisa will start saving $A per year for 40 years. Starting on her 62nd birthday, Lisa plans onwithdrawing $10,000 and will continue these annual withdrawals until the account is exhausted on her 85th birthday. If Lisa’s bank account pays 3% per year, what annual amount of $A will Lisa need to invest in her bank account to achieve her retirement goal?Tala McLouf, a 21-year-old BBA graduate, likes to plan for her future ahead, and would like to save $47.50 every week for her retirement later on. At the end of each year, Tala would invest her total accumulated savings into an account at the local credit union paying her a yearly interest rate of 8.25%. How much money will Tala be able to save per year? How much money will Tala have saved when she reaches 55 years old? How much would Tala have saved by the time she is 60 years old, if she starts investing for her retirement at the age of 40 after paying off the mortgage for her house in Los Angeles? Even if Tala starts saving at 40, she would still like to have the same amount of money in her account when she is 60 as she would have had, had she started saving back when she was 21.
- A man wants to set up a 529 college savings account for his granddaughter. How much would he need to deposit each year into the account in order to have $40,000 saved up for when she goes to college in 16 years, assuming the account earns a 4% return.Kate deposited P5,000 to her bank account every year when she was in high school for four years to prepare for her college degree. She took an engineering course and since then, she stopped depositing to her bank account. Right after graduation (she graduated on time), she got a job that pays P250,000 a year. If she continues to deposit to the same bank account P50,000 every year for 10 years, calculate the future worth after 30 years if the deposits are made at the end of each year and the bank pays 2% interest per year. *Please show your correct and complete solutions to this problem. Thank you!*Sarah wants to save $20,000 to use for a down payment on a home. She deposits some money into a 4-year certificate of deposit (CD) with an annual interest rate of 4.5% compounded monthly. How much does Sarah need to deposit in the CD to reach her goal of having $20,000 in 4 years? Round your final answer to the nearest dollar.
- Liz and Bob just had a baby named Isabelle, and they want to save enough money for Isabelle to go to college. Assume that they start making monthly payments when Isabelle is 3 into an ordinary annuity earning 4.48%, and they calculate that they will need $25,200.00 by the time Isabelle turns 18. How much should they deposit every month so that they reach their goal? Deposit amount = Note: Your answer is a dollar amount and should include a dollar signAlexis and Will are purchasing a home. They wish to save money for 10 years and purchase a house that has a value of $180,000 with cash. If they deposit money into an account paying 12% interest, how much do they need to deposit each month in order to make the purchase?Currently, Ally Gator has saved $15,000 in her retirement account. Ally plans on saving $6000 annually for next 35 years and she assumes that she will earn 7% annually up until she retires. Ally is afraid that she will run out of money during her retirement so she plans on applying the principles of a perpetual annuity to her retirement savings. If Ally plans to earn 3% annually during her retirement years, how much will she be able to withdraw annually forever?
- Jinky has just completed a financial literacy class and she is following the advice on how to plan future purchases based on savings today. Jinky has a stable stream of income. She knows that every December, she receives Christmas bonus of which P20,000 can be set aside. She decides to finance her house and lot based on equity (personal money). How much more should she save monthly for 20 years if her investment earns a minimum of 12% per year?Michelle is attending college and has a part-time job. Once she finishes college, Michelle would like to relocate to a metropolitan area. She wants to build her savings so that she will have a "nest egg" to start her off. Michelle works out her budget and decides she can afford to set aside $80 per month for savings. Her bank will pay her 4% per year, compounded monthly, on her savings account. What will be Michelle's balance in five years?Ali has decided to take a trip back home to California in 1 ½ years, but she needs to save up some money first. She deposits $55 every week into an account that has an APR of 0.14%. How much money will she be able to save up for her trip?
