2. A retired women has 30,000 to invest but needs to make 5,000 a year fromthe intrest to meet certain living expenses. One bond investment pays 5%annual intrest. The rest of it she wants to put in a CD that pays 2%. Howmuch was invested in each account

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Answered: 2. A retired women has 30,000 to invest…

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter2: Gross Income And Exclusions

Section: Chapter Questions

Problem 14MCQ

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4. A couple decides to invest some money in an account for use during retirement. Their goal is to have $100,000 in 40 years. The account pays 5.5% compounded monthly. A. How much do they need to invest to meet their goal? B. How much interest will they earn? C. What is the annual percentage yield? D. Prepare a table that shows the growth of the investment.
4. Nicky starts a retirement account at age 31, putting away $200 each pay period, of which she has 26 per year. However, as her salary increases, she finds she is able to increase contributions at a continuous rate of 2%, modeled by f()=5200e0. If her savings grow at 6.5% continuously, find the amount of money Nicky will have at age 65. Use the appropriate formula, set it up and evaluate with all work shown. Round to the nearest $1.
Lily has an account that pays 3.48% simple interest per year and wants to accumulate $4,000 in interest from it over the next 12 years. How much money should Lily invest in this account to meet her goal? (Use I = Prt) a. $2,000.00 b. $1.670,40 $9.578.54 d. $6,030.27
3. A 45-year-old woman decides to put funds into a retirement plan. She can save $2,000 a year and earn 6 percent on this savings. a. How much will she have accumulated if she retires at age 65?
PLEASE, PERFORM THE EXERCISE IN EXCEL AND SHOW THE FORMULAS2.Alejandra Marrufo wants to know how much she should deposit today, so that in 10 years she will have the amount (VF) of 77,150.00, which she needs to make a pension payment for her domestic worker, a) if the account pays 8.125% interest compoundable semiannually; b) if the account pays 9.65% compoundable monthl
0. Tammy is saving up money for an emergency fund. She hopes to have 4 months' worth of income accumulated, and she takes home $2500 a month. She plans on depositing monthly increments for the next year and a half into a sinking fund which earns 8% Interest, How much should each deposit be?
Bayan wants to buy a house in six years. She hopes to be able to put down OMR 25000 at that time. If the bank CD she wants to invest in will pay 7.5 percent annually, how much will she have to invest today Select one: a. 15680.04 OMR O b. 16107.50 OMR O c. 17107.50 OMR d. None of these O e. 16199.03 OMR
A retired woman has $40,000 to invest but needs to make $5,000 a year from interest to meet certain living expenses. One bond investment pays 15 % annual interest. The rest of it she wants to put in a CD that pays 8 % . If we let æ be the amount the woman invests in the 15 % bond, how much will she be able to invest in the CD? Preview Set up and solve the equation for how much the woman should invest in each option to sustain $5,000 annual return. Round to the nearest cent. Bond: $ CD:
6. If you desire to have $80,000 for a down payment for a house in 7 years, what amount would you need to deposit each year for these 7 years? Assume that your money will earn 10 percent per year. 7. Kate deposits $9,900 each yearinto her retirement account. If these funds have an average earning of 11 percent over the 40 years until her retirement, what will be the value of her retirement account?
Elizabeth has $31,209.00 in an investment account. Her goal is to have the account grow to $118,806.00 in 15 years without having to make any additional contributions to the account. What effective annual rate of interest would she need to earn on the account in order to meet her goal? O 10.32% 10.82% O 9.32% O 9.82% O 11.32%
In order to save for her high school graduation, Marie decided to save ₽200 at the end of each month. If the bank pays 0.250% compounded monthly, how much will be her money by the end of 6 years? A. ₽12,507.02 C. ₽14,507.02 B. ₽13,507.02 D. ₽15,507.02 _____ 2. How much should be invested in a fund each year paying 2% compounded annually to accumulate ₽100,000 for 5 years? A. ₽19,215.84 C. ₽21,215.84 B. ₽20,215.84 D. ₽22,215.84
Your sister just deposited $11,500 into an investment account. She believes that she will earn an annual return of 10 percent for the next 7 years. You believe that you will only be able to earn an annual return of 9.2 percent over the same period. How much more must you deposit today in order to have the same amount as your sister in 7 years? Multiple Choice O O $562.67 $602.86 $643.06 $416.79

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2. A retired women has 30,000 to invest but needs to make 5,000 a year from the intrest to meet certain living expenses. One bond investment pays 5% annual intrest. The rest of it she wants to put in a CD that pays 2%. How much was invested in each account